Option Chain

[Nitin Bhatia]

Dear Nitinji
I am new to your channel and a serious learner.

I am going through all videos one by one and trying to learn the tactics in the stock market. I must thank to you that after going through videos my fundamentals are getting clear.

One thing i want to know in today Option chain of SBI in all the strike prices whether in Call side or Put side Change in Open interest in Negative and premium also negative, what does it mean, i am little bit confused, as per me both side long unwinding happening (pls advise whether my observation is correct). What will be the trend of stock.

What does this scenario called. Pls advise

[Nitin Bhatia]

Just watch at the money options which is 160 as of now.Call writers unwinding their position and put writers created fresh position.Premium decay is less on CE side compared to PE side.If you calculate OI/VOL of 3 highest calls and puts strikes,then you can easily figure out the possible direction of the stock concerned.

[Nitin Bhatia]

It was Option sellers day stock did not move so who bought ce n pe are closing their positions in loss. They actually anticipated large move in any direction.
Or Those who sold options closing their positions in profit. they were right.
Overall Long Unwiding in Options.

This is what i know!!!!!!

[Nitin Bhatia]

This is the reversal signal. When both side premium decay negative and iv increase/ decrease At both side means stock near to reversal.
Correct me if I am wrong.

[Author]

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