Support if Mr A buys 10 lots of 17000ce in Nifty and Mr B sells 10 lots of call in Nifty then the total Oi on 17000 strike price will be 10.
So Oi is basically the number of outstanding contracts which are not squared off.
WHAT IS OPEN INTEREST, HOW TO ANALYZE IT AND DOES IT WORK?
In the thread I'll explain everything about Open interest and also all the tools used to analyze it and my personal opinion.
THIS IS THE ONLY THREAD YOU'LL EVER NEED ON OPEN INTEREST.
Support if Mr A buys 10 lots of 17000ce in Nifty and Mr B sells 10 lots of call in Nifty then the total Oi on 17000 strike price will be 10.
So Oi is basically the number of outstanding contracts which are not squared off.
Oi is only used to determine support and resistance on a particular strike price.
So 16000 and 16200 level can be considered as good supports.
In the same way, 16500 ce has highest Oi and it can be considered as a resistance.
Highest Oi at 16500ce indicates that highest number of people have sold it BUT it also means that highest number of people have Bought it!
If 16500 acts as resistance, the option will go to 0 and all the buyers will lose money.
Why do we look at things from an option seller's perspective?
And also most of the option sellers are positional hence considering things from their perspective can work .
But there's a catch!
- Total Oi.
I've explained it already in the above example. 16200pe,16000pe on the put side have highest Oi
Change in oi represents the total change in Oi "TODAY" or present day/right now.
For example 16300pe has the highest addition on change in oi.
Hence we can expect 16300pe to be a good support since option sellers are building their postions.
Taking the above example, lets say if market starts to trade below 16300, then the change in Oi figure of 69k at 16300pe will start to drop.
This indicates that 16300pe writers are giving up and this is a bearish sign.
If the change in Oi figure, starts to turn negative , then it means that the positional option writers are giving up which is a stronger sign.
Out of these 4 tools what should you consider?
So there is no black and white answer you have to take reference from these tools and form your own view. You have to look at everything.
NO!
In 2018, Total Oi used to work very well.
In2019, Change in Oi was working very well.
But in 2020, Oi completely stopped working.
Earlier it was very rare to see the strikes with highest oi get breached. Market used to perfectly respect it. But that's not the case now.
If Banknifty is at 35800, then 36000ce will have highest oi and 35000pe will have highest oi.
If Banknifty goes above 36000 , then 36000ce oi will start to drop
Oi will keep on building and unwinding at every 500 pts strike price Which does make it useful in 2022.
For more learnings join our telegram channel : https://t.co/uNIrqq5aDP
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Hello and welcome to my profile.
This is a master thread of all the videos I've put up on my Youtube Channel.
I've shared plenty of learnings based on Option Strategies, Trading Psychology, Price action and other aspects of trading.
Will keep on updating this thread.
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This is a master thread of all the videos I've put up on my Youtube Channel.
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Will keep on updating this thread.
What is a Short strangle and how to do it the right way
Explained with live backtesting and
As requested by most of you guys, decided to start a basic options trading strategies series.
— Aditya Trivedi (@itsAdityaT) July 21, 2021
The first video is out with live back test and adjustments.
Here's it : https://t.co/qi4Fsm2r6p
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— Aditya Trivedi (@itsAdityaT) May 30, 2021
I intentionally went a bit slower so that it becomes easy to understand.
If you have any doubts, I'll be happy to answer.
Try it and let me know how much money you made.\U0001f609https://t.co/Jnbr77EGOh
Nifty weekly option strategy with adjustments. Explained every detail in
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— Aditya Trivedi (@itsAdityaT) June 13, 2021
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Workshop worth 5 LAKHS absolutely for FREE.
I've posted some amazing stuff about trading which in itself is a workshop.
Posting some of my best threads here.
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Writing down my reasons for choosing
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3: How to adjust a short
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I've posted some amazing stuff about trading which in itself is a workshop.
Posting some of my best threads here.
1: Benefits of Option selling.
Why are most of the successful traders option sellers?
Writing down my reasons for choosing
BENEFITS OF OPTION SELLING
— Aditya Trivedi (@itsAdityaT) May 28, 2022
Most of the successful traders here are option sellers.
Ever wondered why?
Why we have chosen option selling?
How to decide what strategies to use?
THIS IS THE ONLY THREAD YOU'LL EVER NEED!
Find out below
2: How to use Technical Analysis to form a weekly view as an option
HOW TO USE TECHNICAL ANALYSIS TO FORM A WEEKLY VIEW
— Aditya Trivedi (@itsAdityaT) September 24, 2022
A thread\U0001f9f5
Got many DMs about how I form my weekly view in Banknifty and how do I analyze it.
In this thread I'll show you how I do it so that anyone can analyze Banknifty and other instruments the right way.
3: How to adjust a short
HOW TO ADJUST A SHORT STRANGLE?
— Aditya Trivedi (@itsAdityaT) August 13, 2022
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Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
• Sold Strangles 20% cap used
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• Identified a reversal and sold puts
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• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
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• When to sell
• How to do Adjustments
• Exit
1. Let's start option selling learning.
— Mitesh Patel (@Mitesh_Engr) February 10, 2019
Strangle selling. ( I am doing mostly in weekly Bank Nifty)
When to sell? When VIX is below 15
Assume spot is at 27500
Sell 27100 PE & 27900 CE
say premium for both 50-50
If bank nifty will move in narrow range u will get profit from both.
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
Few are selling 20-25 Rs positional option selling course.
— Mitesh Patel (@Mitesh_Engr) November 3, 2019
Nothing big deal in that.
For selling weekly option just identify last week low and high.
Now from that low and high keep 1-1.5% distance from strike.
And sell option on both side.
1/n
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only
Sold 29200 put and 30500 call
— Mitesh Patel (@Mitesh_Engr) April 12, 2019
Used 20% capital@44 each
2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.
• Identified a reversal and sold puts
• Puts decayed a lot
• When achieved 2% profit through puts then sold
Already giving more than 2% return in a week. Now I will prefer to sell 32500 call at 74 to make it strangle in equal ratio.
— Mitesh Patel (@Mitesh_Engr) February 7, 2020
To all. This is free learning for you. How to play option to make consistent return.
Stay tuned and learn it here free of cost. https://t.co/7J7LC86oW0
This Simple Strategy has given around 18500/- in 20 days with a ROI of 3% on 5 lakh capital.
If we buy hedges, Margin will reduce & ROI increases.
More strategies will be shared going forward.
All u need is execute with Discipline & sticking with system when in DD.
(1/n) https://t.co/3KH9v0tgsb
to learn more about Algo Trading (in both directional & non directional) , you can visit my Telegram channel especially created for Algo Strategies.
Will be updating Daily Performance of our Algos in below
If we buy hedges, Margin will reduce & ROI increases.
More strategies will be shared going forward.
All u need is execute with Discipline & sticking with system when in DD.
(1/n) https://t.co/3KH9v0tgsb
A simple INTRADAY strategy with decent BACKTEST report of more than 3-5% returns on Monthly basis.
— OptionSeller(Vardhan) (@CaVardhanCa) August 15, 2021
Will be sharing live report on daily basis for a month.
& will conduct FREE webinar to discuss about the results in coming weeks.
Sharing all rules below.
(1/n) https://t.co/VMlxNtX90s pic.twitter.com/cJaa9axRss
to learn more about Algo Trading (in both directional & non directional) , you can visit my Telegram channel especially created for Algo Strategies.
Will be updating Daily Performance of our Algos in below
Let me apply @Bijay_reborn 's strategies in options for some days and then share them.
2 Strategies I liked:
1. Plot ATM week CE/PE charts with VWAP & OI Change. Buy when prices move past VWAP while OI starts to move down.
2. Plot ATM Mth CE/ PE with AVWAP. If above, buy wk CE/PE
2 Strategies I liked:
1. Plot ATM week CE/PE charts with VWAP & OI Change. Buy when prices move past VWAP while OI starts to move down.
2. Plot ATM Mth CE/ PE with AVWAP. If above, buy wk CE/PE
master can you give few key points in english. Saw the entire video with subtitles but did not understand.
— bala (@BalaThink) March 13, 2022
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H was always unseen in S2NL :)
Those who exited at 1500 needed money. They can always come back near 969. Those who exited at 230 also needed money. They can come back near 95.
Those who sold L @ 660 can always come back at 360. Those who sold S last week can be back @ 301
Those who exited at 1500 needed money. They can always come back near 969. Those who exited at 230 also needed money. They can come back near 95.
Those who sold L @ 660 can always come back at 360. Those who sold S last week can be back @ 301
Sir, Log yahan.. 13 days patience nhi rakh sakte aur aap 2013 ki baat kar rahe ho. Even Aap Ready made portfolio banakar bhi de do to bhi wo 1 month me hi EXIT kar denge \U0001f602
— BhavinKhengarSuratGujarat (@IntradayWithBRK) September 19, 2021
Neuland 2700 se 1500 & Sequent 330 to 230 kya huwa.. 99% retailers/investors twitter par charcha n EXIT\U0001f602
