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A common conclusion is that if Change in Open Interest to Volume Ratio is HIGH on call side then it means CALL WRITERS are ACTIVE. It is WRONG Conclusion. The reason being, you need to check whether it is fresh build up or short covering. This can be found with the help of Premium Decay
If Change in Open Interest to Volume Ratio is high on CALL Side but premium decay is more on Put Side then it implies call writers are covering their positions. Market will remain bullish. However, If premium decay is more on Call Side, in this case fresh call writing is done thus the market will remain bearish.
If COI/Vol is high on Put Side and Premium Decay is more on put side then market will go up as fresh writing is done on put side but if premium decay is more on call side then it means put writers are covering their positions and market can be bearish.
I have explained all these concepts in following live streaming
https://www.youtube.com/watch?v=NWNX8929uFw -
Sir plz upload the above video
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