I have been trading in options, nifty, for the last 7 months and I have noticed many things which I would like to share so that it might help you.
First, I would like to comment on a few things discussed here:
“First of All Option Chain give us Short time View Not for Intraday View.”
I don’t think so. Checking weekly expiry and monthly expiry both simultaneously tells you many things.
First of all, you get some bound to the market value and that is very important.
Secondly, you can see the OI build-up. Check the volume and IV to know if some big players are taking the position.
Now check the direction of the market as the OI builds up.
If OI gets builds-up on the call side OTM and market moves up then buy position and if the market was going down then sell position is being created.
Similarly for Put side OTM, if the market goes up then sell position and if the market goes down then buy position is being created.
And now comes the interesting part, retails investors take sell position(according to my observation), where they find huge OI buildup or take buy-side in which direction the market was moving.
And the banks and the brokers give huge margins with a stop loss to retailers.
You can earn a lot in options in intraday if you can identify on which side the stop loss hunting will happen(not necessarily has to happen every day but most of the days like 80%). I especially find the banking sector here to be the main culprit. I think it happens because they provide most of the margins to the retailers. Observe the movement of the banking sector and especially ICICIBANK and HDFCBANK.
Then comes the premium decay analysis on which you have a dedicated video of sir on youtube.
So please watch all the videos as well as the live streamings, as most of the doubts are discussed during the live streaming and try to find pattern by observing the market on a regular basis.
I hope this will help you.