A tool every Option trader should use : @iChartsIndia 🧵

@iChartsIndia Let's decode why you should use it too and how I help myself.

I use these four features(primarily)

☑️ Option Chain
☑️ Total PE-CE Data
☑️ Option OI breakup
☑️ Strangle Charts(Combined Premium)

@iChartsIndia 1/ Option Chain

Option Chain data is reliable when the trading week begins(i.e Friday). Even, Monday's data is not very accurate as traders are still building their positions.

@iChartsIndia I start giving emphasis to the build-up from Tuesday.

Looking at this week's expiry data(i.e 23rd June 2022),

We can observe

Put writing at 15300, Call writing at 16000

@iChartsIndia 15500 call unwinding has been massive; which is visible by the move on Tuesday(i.e 21st June 2022)

Puts are still more pricey than calls, implying traders have been factoring a down move more than an up-move.

@iChartsIndia 2/ Total PE-CE Data

How I interpret this data and use it to my benefit.

The difference indicates whether there is more put writing or more call writing.

If (PE writing > CE writing)
{
Column Color : Green
}

Else
{
Column Color : Red
}

@iChartsIndia Future Price column color indicates whether the market is above VWAP/below VWAP.

@iChartsIndia If the market is trading above VWAP, color is green.

And if the market trades below VWAP, color is pink.

@iChartsIndia

@iChartsIndia Inference Signals:

If VWAP = Green, Diff = Red : Conflicting Signal(Market can remain rangebound)

If VWAP = Green, Diff = Green : Market is trending up and we can look for long trades

If VWAP = Pink, Diff = Green : Conflicting Signal(Market can remain rangebound)

@iChartsIndia If VWAP = Pink, Diff = Red : Market is trending down and we can look for short trades

@iChartsIndia Total PE-CE Data just helps in finding the direction for the day.

@iChartsIndia 3/ Option OI Breakup

@iChartsIndia This helps in finding out the strike which is experiencing IV spike and one which is continuously making new lows.

If you are trading non-directionally, only way to make money is if you are able to either avoid spikes/ get out with a minor injury.

@iChartsIndia Non-Directional Trader's Nightmare

Low premiums + Market trending down(accelerated move) + Spike in put premiums + Calls not decaying

@iChartsIndia OI breakup has saved me many a times by giving timely exits.

@iChartsIndia 4/ Strangle Charts

Combined premium charts are of great use by just plotting VWAP and 20 EMA.

If you trade non-directionally by shorting options, the chart should be trending down.

@iChartsIndia There are many other amazing features. Will look to cover them sometime later.

Am still exploring the tool.

Thought of sharing it for the benefit of everyone.

@iChartsIndia Read this thread by @AdityaTodmal on iCharts to know more about the platform.

https://t.co/UL259fMIg3

8 Powerful Features of @iChartsIndia Option Data users should be using:\U0001f9f5

Collaborated with @niki_poojary
— Aditya Todmal (@AdityaTodmal) June 3, 2022

@iChartsIndia @AdityaTodmal For more such threads in future, follow me at @shivang_ran.

Retweet the first tweet to spread it across.

Feedback appreciated.

Happy Trading.

Until next time, bye 👋

A tool every Option trader should use : @iChartsIndia 🧵

More from All

You May Also Like