Here comes the 3rd and final part of the long weekend 'Beginners' Pathway" series.

In this we'll see Open Interest basics and Option Chain Analysis.

There are two types of Options, Call Option & Put Option.
This graphics show when to buy and when to sell options.
The first thing that we need to know is the moneyness i.e. whether an Option is At the money (ATM), In the money (ITM) or Out of the Money (OTM).

The strike closest to the market price is At The Money.

I have tried to explain OTM & ITM in a very simplistic & easy manner.
Option chain of Nifty can be seen here

https://t.co/TgHdov6Kox
Lets see each item one by one
OI (Open Interest) – is the number of open contracts relating to that strike. One buy & sell transaction constitutes one unit of OI.

CHNG IN OI – is the change in OI as compared to last day

VOLUME – is the total number of contracts that are traded for a specific strike.
IV means Implied Volatility, High IV means market is expecting more fluctuations in future.

LTP means the Last Traded Price or Premium of an option.

More from Professor

More from Optionslearnings

A Thread on How to NOT do blunders while selling Options. 🧵🪡

1. Never be Greedy in a High Vix Environment.

Sellers selling OTM get lured by higher premiums and sell near ATM or more than they usually do, this will burn your hand as High premiums also mean that you will end up giving higher premium back than usual as soom as it spikes.


2. Hope

Hope drives a man crazy and this is true for trading the most, hoping for a reversal to cut the pain. Humans have a tendency to avoid the pain and one does not accept the pain by not booking a loss

Tom Hougaard explains this well below.

https://t.co/zDbDT2hdej


3. Not having a setup in non directional Selling

You cannot make money long term if you don’t have a set of rules or adjustments in place already if you are trading long term. Make a plan or a system so that you always know how to survive. Your Position is non D not the market.


4. Getting Egoistic

Many people think they are supreme because they are selling options much likely because of the Trend on Twitter in the community,
You are a trader think like one and remain one trading a certain way does not make you better.

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THIS.

Russia hasn't been a willing partner in this treaty for almost 3 decades. We should have ended the pretense long ago.

Naturally, Rand Paul is telling anyone who will listen to him that Trump is making a HUGE MISTAKE here.


Rand is just like his dad, Ron. 100% isolationist.

They've never grasped that 100% isolationist is not 'America First' when you examine it. It really means 'America Alone'.

The consistent grousing of pursuing military alliances with allies - like Trump is doing now with Saudi Arabia.

So of course Rand has also spent the last 2 days loudly calling for Trump to kill the arms deal with Saudi Arabia and end our alliance with them.

What Obama was engineering with his foreign policy was de facto isolationism: pull all the troops out of the ME, abandon the region to Iranian control as a client state of Russia.

Obama wasn't building an alliance with Iran; he was facilitating abandoning the ME to Iran.

Obama wouldn't even leave behind a token security force, so of course what happened was the rise of ISIS. He also pumped billions of dollars into the Iranian coffers, which the Mullah's used to fund destabilizing activity [wars/terrorism] & criminal enterprises all over the globe