BNF made a low of 33606 and high of 34815 in this weekly expiry. On all three days it closed below VWAP. Also on all three days its closing very near to 34200 levels. U can see all these levels in below picture.
We all know by now that 34000-34800 is the range of BNF for last few days and hence people shorting OTM options outside this range will make money. Lets dig a bit deep more.
Now see the things one by one
On 20/5/22 this strangle closed at 908 with OI value of Rs 1.22 ,
then on 23/5/22 this strangle closed at 790 with OI value of Rs .80 and finally today it closed at 462 with OI value of Rs 2.09.
This strangle holds the maximum OI in the chain with support and resistance marked which gives us a range of 33538-34962 for this expiry. Frankly
speaking this straddle looks very safe and personally I wont think that todays seller of this strangle will panick ever. Now few more data points, since the start of this weekly expiry Pain points below 34100 is constantly decreasing.
On 20/5 break of this PE was making Rs 3,06,01,91,770.00 in danger and then it reduced to Rs 2,81,17,02,460.00 on 23/5/22 and today its at 2,75,72,14,637.50 . This gives us a idea that PE seller are not confident on their position and hence getting out gradually.