Tagged: IV, Option Chain
- This topic has 7 replies, 8 voices, and was last updated 3 years ago by Nitin Bhatia.
November 4, 2019 at 4:28 PM #164119
Sir, as you said i have been observing a particular option expiry since last 1 month(since the creation of first position). Sometimes, I find long build up is there, after 1 hour, i find short has been created. After few hours, again i find long unwinding is there. I can’t conclude what positions are there because i find most of strike prices are mixture of long positions & short positions. In most of the strike prices, retail as well as big players exist. What to conclude from those facts ?
November 6, 2019 at 6:15 PM #209634
Nitin Sir If I m Wrong Thn Plz Correct Me.
First of All Option Chain give us Short time View Not for Intraday View.
1- If We devide OI with Volume data thn we can get the approximate position of Clients and Other Players.
2- For chk Long/Short Position of each and every strike price we have to consider ITM ATM AND OTM data.
3- Jaisa me samajh paaya hu aapke Question se , If We Consider only Open Intrest and Premium then Confusion ho Jayega, If We consider Volume and Change in OI with IV (increasing/decresing) and Greeks Data then hame ye pata chalega ki kaha Long/Short Position Creat ki ja rhi hai by big Players.
4- As per learning in Option Chain Short Positions are more Important than Long Position.
5- Before Holidays mostly Premium Eating ki jati hai.
6- If we find Every Strike price (As per leaning Higher OI,Second Higher OI and ATM Strike Price) Like Call Side and Put Side has Long/Short position then u can figure out with IV and Premium ki kon si strike price hit ho Jayegi.
7- If we figure out tht Retail Clients and Big Players are on same platform thn possiblities hai ki Big players, Retail Clients ko bahar karne k liye Stop Loss Hunting kare.
November 6, 2019 at 6:16 PM #209631
According to me, top-down approach is necessary. If we know big players are bearish .
Then we can consider call short & put long.
November 6, 2019 at 6:17 PM #209595
You have to analyze EoD data for some time.After you start understanding that,shift to intraday.
May 22, 2020 at 2:44 PM #210696
live option data is difficult to analyse due to time delay and clearing corporation working system so better to study eod data and option chain view is always short term view..not intraday.
May 22, 2020 at 3:03 PM #210893
Dear Rahul, In my opinion, You should consider Option Chain on closing data basis for Clear cut conclusion for Short term view.
For Intra-day, Option Chain will give you nothing if you do not have enough knowledge of each and every point shown in option chain
May 22, 2020 at 3:18 PM #212083
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.
May 22, 2020 at 3:25 PM #220447
In which circumstances iv increase and iv decrease?
1. If more active buyers are there in that particular strike price in call or put, in that strike price iv increases.
2. If more active sellers are there in that particular strike price in call or put , in that strike price, iv decreases.
Is this the only possibility or other possible scenarios are there, please elaborate on this
Does big players able to buy or sell options with out changing iv much? If so, how do they do it.
Any one please explain.
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