Till now, there is NO Technical Indicator available based on the “Most Important LEADING INDICATOR” Option Chain Analysis & the Futures Money Flow. The reason being, Derivative analysis i.e. Option Chain & Futures are the MOST COMPLEX Analysis as they are dependent on multiple variables like Premium, Premium Decay, Open Interest, Change in Open Interest, Implied Volatility, Volume, Strike Prices, etc. All these variables are analyzed for both PUT and CALL Side in Option Chain. Which makes it IMPOSSIBLE for the Retail Investors to Analyze the Option Chain and the Futures data.
Based on my Years of Studies and PRACTICAL LEARNINGS, I have simplified the MOST COMPLEX Option Chain Analysis & Futures data Analysis and DEVELOPED a “WORLD’s FIRST & ONLY OPTION CHAIN INDICATOR” which considers both option chain and futures money flow to calculate the final score. With the help of a option chain indicator, you can easily find out the strength/weakness of the market. The final score considers the position of the option writers i.e. who (Put/Call Writer) is creating fresh positions and who is closing their positions along with futures money flow data, which will tell you whether long/short positions are created/closed in the futures segment.
The “MOST COMPLEX OPTION CHAIN & Futures ANALYSIS” is now MOST SIMPLE “OPTION CHAIN” ANALYSIS.
How to Access Option Chain Indicator?
The access of Intraday Option Chain Indicator is currently available “ONLY” to the YouTube Members with the membership level of “SUPER FANS“. Other membership levels are NOT ELIGIBLE for Option Chain Indicator.
Step 1: To become a member, please click on the following link
Step 2: After a successful subscription, Option Chain Indicator updates are shared through the following community tab link
#PRACTICAL Learning i.e. my personal inputs/interpretation/conclusion of this Indicator is available through a community tab post for “Super Fans” – YouTube Members.
What is the frequency of updates of Option Chain Indicator?
“Intraday” Option Chain Indicator updates are shared THRICE a WEEK tentatively on Monday, Tuesday and Thursday.
How the Option Chain Indicator Score is Calculated?
The basic principle is explained in the following video. However, the weightage and parameters keep changing. Kindly watch all the videos for the recent changes & updates
How the Futures Money Flow Score is Calculated?
Please search for term “Futures Analysis” on the YouTube channel Homepage and watch the videos
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Please check following troubleshooting guide
Option Chain Indicator Learning Process, Rules, How to Analyze Option Chain Indicator Score and Important Points:
OPTION CHAIN INDICATOR Learning Process:
Option Chain Indicator is a LOGIC & Reasoning based Mathematical Technical Indicator. Learning cycle may vary from an individual to individual depending on the time devoted towards learning. it is important to understand the working and movement of the Option Chain Indicator before you start using option chain indicator. You may follow the trailing steps
Step 1: BASIC Knowledge and Understanding of the Option Chain & Futures Analysis is MUST. You may watch the Option Chain & Futures Analysis videos on our YouTube Channel.
Step 2: Watch all the learning videos related to Option Chain Indicator (On channel home page search for “Option Chain Indicator” & watch the videos relevant to Option Chain Indicator). Please search for term “Futures Analysis” on the YouTube channel Homepage and watch the videos. All the RULES and Important Points are mentioned on this page. Kindly go through this webpage till the end.
Step 3: Watch the past Option Chain Indicator Live Streaming and correlate with the same day post market analysis video/daily summary post shared through community tab (All the Option Chain Indicator live streaming and post market analysis are available in “YouTube Members” Playlist). Daily summary is shared through community tab posts (https://www.youtube.com/c/NitinBhatia/community)
Step 4: Go through all the community tab posts.
Step 5: LAST but not the Least, the BEST LEARNING is the Practical Learning during the LIVE Market.
How to use Intraday Option Chain Indicator?
In Intraday Option Chain Indicator, the option chain indicator and futures money flow analysis scores are merged with EQUAL weightage in the final Score and only SINGLE Score is calculated. The interpretation of the score is VERY SIMPLE
- If the Option Chain Indicator Score is Increasing: Futures Short/Call Writers closing existing Positions or Futures Long/Put Writers creating Fresh Positions. The market may be Strong
- If the Option Chain Indicator Score is Decreasing: Futures Short/Call Writers creating fresh Positions or Futures Long/Put Writers closing existing Positions. The market may be Weak
(a) Long Trade: Increasing Score or Reversal Point from the Bottom
(b) Short Trade: Decreasing Score or Reversal Point from the Top
(a) Long Trade: Reversal Point from the top.
(b) Short Trade: Reversal Point from the bottom.
# Due to complex nature of option chain analysis & dynamic/volatile market, the probability of correct signals by option chain indicator keep decreasing during the day.
# The Limitation of Intraday Option Chain Indicator is when the Stop Loss Hunting move becomes REAL Move and Secondly, the Option Chain data is slightly DELAYED during LIVE market.
# On the EXPIRY day i.e. weekly/monthly, market may change its view MULTIPLE times before the FINAL Move. Therefore, it is important to exercise EXTRA caution on expiry days
Exceptions & Limitations of Option Chain Indicator Score:
There is NO HOLY GRAIL trading system/setup or Indicator in this world. All the Points and Rules mentioned on this page are HIGH Probability Scenarios. The words like “Definitely”, “Surely”, “100%”, “MUST”, “Certain”, “Assured” etc are MISSING from the Stock Market dictionary. JP Morgan Chase (With BEST TRADING/INVESTMENT MINDS in the world) was Profitable on 151 days of the 260 trading days in a year i.e. WINNING RATE of 60% but still HIGHLY PROFITABLE. Please check page 82 of the following Form 10-Q filed with the UNITED STATES SECURITIES AND EXCHANGE COMMISSION. RISK & Money Management are the keys to success
- Option Chain & Futures Money Flow are a Leading Indicator. It works on the basic principle that the big players/option writers/futures traders, who are in control of the market are Proactive i.e. adjust their positions in advance/before any move. However, Stock Market is irrational & in case of unforeseen & unexpected news/event/circumstance, option writers are not able to adjust their positions on time or before the move thus Option Chain Indicator might not capture such movements. In such cases, option writers/futures traders, in control of the market are Reactive to the situation. Option Chain Indicator will wait & respond immediately as soon as the option writers/Future traders will respond/react to such unfavorable moves i.e. start adjusting their positions.
- This indicator is shared on the best effort basis for learning, educational and informational purpose, and do not constitute any investment/trading advice.
- This is not a TRADING Indicator. It only tells the strength/weakness of the option chain.
- STOCK MARKET is IRRATIONAL and Market may or may not move as per the positions taken by the option writers/Futures participants.
- Minor variations in the score due to short term volatility can be ignored. Please check the trend.
- Please watch the following video
For Practical learning, please watch Post Market Analysis Videos in following playlist
- Kindly do not initiate any trade or buy, sell or hold position based on this indicator. We do not recommend the use of this indicator as a sole means of trading decisions.
- We will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on any information shared on this webpage or this website.
- Access to this indicator is purely complimentary for a limited period and can be withdrawn anytime without any notice or intimation.
- We do not undertake any guarantee or provide any kind of assurance on the accuracy of the results generated.
- We do not provide any tips, recommendations, or suggestions. Kindly consult your financial planner/investment advisor before making any investment or trading decision.
- We reserve the right to change the details/information shared on this page anytime at our own sole discretion.
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- The information shared is PRIVATE, CONFIDENTIAL, and personal to its recipients to whom the access is provided and should not be copied, distributed or reproduced in whole, or in part, nor passed to any third party.