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Option Chain Indicator
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Tagged: Option Chain
Sir,
In your option chain intraday strategy video you said to monitor top option strikes and if in top 2 one is ATM strike(50 point range from CMP) and other is OTM(200 point above/below from CMP)then ATM is getting short and OTM strike is getting Long.
Do we need to consider premium change% or OI change to find out they are being long or short ?
Or consider ATM means it’s short and OTM long ?
As per my learning you have to consider Premium Change%, OI and IV at both sides.
My seniors, Please correct me if I’m wrong.
You have to consider all data points else you will not be able to find whether fresh positions are created or existing positions are getting closed. For example, Writing at PUT ATM might be closure of existing long positions then the conclusion will not be bullish.