"Open Interest And Price Relation..."

Basics Of OI with Detailed Explanation in Charts.
All 4 Types Included...
Examples are Most Recent..
So, It Will Be Easier to Understand..

1) LONG Build-up
--> Increase in Price + Increase in OI.

Examples -- MUTHOOTFIN And INFRATEL..

2) SHORT Build-up
--> Fall in Price + Increase in OI.

Examples -- SUNTV And AUROPHARMA.
3) LONG Unwinding
--> Fall in Price + Fall in OI.

EXAMPLE -- BRITANNIA
4) SHORT Covering
--> RISE In Price + Fall in OI.

EXAMPLES -- BNF 30500CE & 30600CE.

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A THREAD ON @SarangSood

Decoded his way of analysis/logics for everyone to easily understand.

Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen

1. Keeps following volatility super closely.

Makes 7-8 different strategies to give him a sense of what's going on.

Whichever gives highest profit he trades in.


2. Theta falls when market moves.
Falls where market is headed towards not on our original position.


3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result

He believes in a market operator, if market mover sells volatility Sarang Sir joins him.


4. Theta decay vs Fall in vega

Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.