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Sir. In case if we can see PUTS and CALLS both show new shorts forming. I’m unable to Find the Direction Easily Is there any other way to find direction besides looking at OI on either side. Explain what to do if new shorts, short covering, new longs form on both PUTS and CALLs side
what to do when Inconclusive outcome happens like new longs on Puts side and short covering on calls side etc. -
To
Himanshu91
if it really happen then smart money is trying to confuse retail investor
then we should check stock/index future data..
1> check open interest with stock/index price…
2> check co relation between open interest and stock/index price
3> in option chain observe where maximum oi is addition
4> in option chain check where volume is low(smart money generally works
with less volume)
5> check which stk price change in premium is max
6>if it is stock then observe delivery %
last but not the least
7>observe change in iv of stk price (when smart money buy/sell then iv/premium also change drastically)
if you done all the above steps then you can find out the direction of the stock/index
*this type of scenario is very rare , if you can share any data like this then it will help us to analyse ..
hope this process clears your doubt
thank you -
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