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
More from Aditya Trivedi
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.
What is a Short strangle and how to do it the right way
Explained with live backtesting and
Banknifty Weekly option strategy with adjustments.
Explaining the best way to execute this strategy to make 1% profit a
Nifty weekly option strategy with adjustments. Explained every detail in
A safe strategy to play a bearish view with low risk, high reward
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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.
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
Banknifty Weekly option strategy with adjustments.
Explaining the best way to execute this strategy to make 1% profit a
Finally my Banknifty option selling strategy for makking 1% a week video is out!
— 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
Nifty Weekly option selling strategy with adjustments video is out now on Youtube!https://t.co/Bgxt3UXsar
— Aditya Trivedi (@itsAdityaT) June 13, 2021
A safe strategy to play a bearish view with low risk, high reward
The right way to execute a bear put spread for maximum
This is my favorite strategy to play a bearish view with extremely low risk and high reward.
— Aditya Trivedi (@itsAdityaT) July 27, 2021
Also sharing a high probability setup for playing out this bearish strategy.
Video is out now on Youtube : https://t.co/7P12Zby05B
More from Optionslearnings
Detailed thread on how @niki_poojary & I managed our positions on Thursday and got a big profit via straddles.
Many people were asking us in the comments, how we managed.
Explained transparently what we did.
Hope you get something to learn from this. 😀👍
Many people were asking us in the comments, how we managed.
Explained transparently what we did.
Hope you get something to learn from this. 😀👍
Sep 23, 2021 - Weekly expiry, preceded by the FOMC meet and not to mention the gap up which then turned out to be a trending day
— Nikita Poojary (@niki_poojary) September 25, 2021
Here\u2019s how the strangles were converted into straddles & how the positions were managed!
Time for a Thread \U0001f9f5
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"I lied about my basic beliefs in order to keep a prestigious job. Now that it will be zero-cost to me, I have a few things to say."
We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.
Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)
It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.
Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".
As a dean of a major academic institution, I could not have said this. But I will now. Requiring such statements in applications for appointments and promotions is an affront to academic freedom, and diminishes the true value of diversity, equity of inclusion by trivializing it. https://t.co/NfcI5VLODi
— Jeffrey Flier (@jflier) November 10, 2018
We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.
Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)
It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.
Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".