June 11, 2019 at 4:34 PM #153851Vaibhav2306Participant
If correlation of OI with nifty is strong positive in this case we can say put writing is there becoz if oi of put increases and market increases too
And vice-versa if correlation is strong negative we can say that put buying is there becoz put oi increases and market decreases
Although 360° is important but in general term
June 11, 2019 at 5:08 PM #154495Lakhwinder singhParticipant
Considering which strike price against oi
June 12, 2019 at 12:30 AM #155045SANTANUMAJI1994Participant
1>if one person fresh buy put option oi will increase
2>if some one fresh sell put then also oi will increase
now if co relation is high between nifty and put oi then we should analyse is it
i>long put(Bearish) or ii>short put(Bulish)
only observing co relation between nifty and option oi ,we cant conclude anything
.Hope you understand
June 12, 2019 at 8:47 PM #155634hulmatParticipant
sir can you plz tell me that if i was calculating correlation coffeciant in this current week that which expiry data should i use.
1. last week expiry means 6 jun expiry data and then calculate correlation between each variable
2. 13 jun expiry data use
3. this month expiry means 27 jun expiry data use
or something else
suppose i was calculating correlation coefficient on 10 jun.
plz suggest me
June 12, 2019 at 11:47 PM #155654SANTANUMAJI1994Participant
generally on exp day we can collect data of next exp day..[on 13 jun we can collect data of next exp 20 jun ]..exp day data sometime misleads our analysis..
in your question you not mentioned correlation between what u want to calculate…
June 13, 2019 at 1:56 PM #155691hulmatParticipant
sir as nitin sir explain we can calculate iv and prm correlation with nifty prz from last five trading days iv prm and nifty prz and then calculate their correlatioin coefficient in excel.
sir i wanna to know if i will calculate correlation coefficient of iv and prm with nifty prz on this sunday on 16 jun. then i should take 10 jun to 14 jun data of iv prm and nifty prz.
as nifty prz is same but iv and prm will be different in these days for 13 jun expiry and 20 jun expiry and month expiry on 27 jun.
i wanna to know which expiry data of iv and prm i should consider for my correlation coefficient analysis as i am calculating it on 16 jun sunday.
plz explain and thanks in advance.
June 20, 2019 at 9:11 PM #158800Vaibhav2306Participant
To shantanu manjhi
sir i already mentioned that 360 degree analysis is important here all the cases covered also
1. if correlation is positive
if oi increases means put writing because market is also increases
if oi decreases means PUT short covering because market is also decreases
2.if correlation is negative
if oi increases means put buying because market decreases
if oi decreases means PUT long unwinding because market increases
VICE-VERSA FOR CALLS
HERE MY POINTER IS OI CORRELATION TELLS EVERYTHING.
May 23, 2020 at 12:35 AM #279359DIPESH PATELParticipant
You are absolutely right because we have to check where position has been mad i.e. ATM, Far OTM as per sir’s explaination.
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