One way of analyzing OI table:
More than 850,000 PUT sell contracts added between 8100 and 8150. This means these many contract holders felt on Friday that NIFTY may not go down below 8100.
Maximum OI is at 8000 PUT ie around 86 lacs. So 86 lacs contract holders stood in the market with their conviction that NIFTY will not go below 8000 in near future or at least before expiry.
IVs have gone down with increase in OI, this indicates contracts were dominated by PUT writers.
About 11 lacs CALL writers between 8100-7900 exited on Friday worried about more upside, however 21 lacs CALL writers added positions between 8150-8300. So a big trading community thinks NIFTY would be resisted in this range. More than 10 lacs CALLs were written of 8200 CALL option contract on Friday and in simple term, on Friday, many traders had conviction that NIFTY will not cross 8200 in near future.
Maximum OI is also at 8200 CALL, so 8200-8220 should act as good resistance for the series.
NIFTY shut shop around 8115 but you would notice lot of CALL writers exited from 8100 CALL whereas almost equal number of PUTs added. See black box in above table. So it is clear NIFTY, even if it could open gap down, it is very difficult for NIFTY to go substantially below 8100 for the major part of the day. Price of 8100 PUT is around 28, that means 8070-8075 should be good support as per the option table.
For the day, just stay long in NIFTY.
Buy multiple lots of 8150 CALLs around 25-30 and book profit between 42-45-51. SL 12/-. Keep an eye on your brokerage and ensure you are making profit and not your broker.
Book profit only during the day and don't carry forward positions because as per option table good support around 8000 and NIFTY might settle somewhere near 8000 at the expiry of this series. FIIs are selling (net sellers) in cash, though in very small quantity.
Auropharma:
Generally stock options are not traded to an extent OI analysis should give any meaningful results. But since AUROPHARMA undergoing FDA audit and there could be possibility of some negative remarks. This stock might go down.
Support at 800 and resistance at 900. But lot of CALLs added between 880-920. So this stock may not go above 920 immediately. Some smart money exited between 840- 880.
So their could be high probability one could see this stock near 840. It gave a black candle with high volume. As per graph it could touch 830 very soon.
Bearspread strategy:
Buy 860 PUT around 19/- and sell 820 PUT around 7/-.
Maximum profit potential 14000/- maximum loss could be around 6000/-
One can reduce loss by selling 920 CALL around 4-5.
Risk takers could buy 840 PUT of AUROPHARMA around 12, maximum loss could be Rs. 6000/-. But one can book profit immediately tomorrow around 18-20 and need not wait till expiry.
Disclaimer: This blog does not take any responsibility of your profit/loss
More than 850,000 PUT sell contracts added between 8100 and 8150. This means these many contract holders felt on Friday that NIFTY may not go down below 8100.
Maximum OI is at 8000 PUT ie around 86 lacs. So 86 lacs contract holders stood in the market with their conviction that NIFTY will not go below 8000 in near future or at least before expiry.
IVs have gone down with increase in OI, this indicates contracts were dominated by PUT writers.
About 11 lacs CALL writers between 8100-7900 exited on Friday worried about more upside, however 21 lacs CALL writers added positions between 8150-8300. So a big trading community thinks NIFTY would be resisted in this range. More than 10 lacs CALLs were written of 8200 CALL option contract on Friday and in simple term, on Friday, many traders had conviction that NIFTY will not cross 8200 in near future.
Maximum OI is also at 8200 CALL, so 8200-8220 should act as good resistance for the series.
NIFTY shut shop around 8115 but you would notice lot of CALL writers exited from 8100 CALL whereas almost equal number of PUTs added. See black box in above table. So it is clear NIFTY, even if it could open gap down, it is very difficult for NIFTY to go substantially below 8100 for the major part of the day. Price of 8100 PUT is around 28, that means 8070-8075 should be good support as per the option table.
For the day, just stay long in NIFTY.
Buy multiple lots of 8150 CALLs around 25-30 and book profit between 42-45-51. SL 12/-. Keep an eye on your brokerage and ensure you are making profit and not your broker.
Book profit only during the day and don't carry forward positions because as per option table good support around 8000 and NIFTY might settle somewhere near 8000 at the expiry of this series. FIIs are selling (net sellers) in cash, though in very small quantity.
Auropharma:
Generally stock options are not traded to an extent OI analysis should give any meaningful results. But since AUROPHARMA undergoing FDA audit and there could be possibility of some negative remarks. This stock might go down.
Support at 800 and resistance at 900. But lot of CALLs added between 880-920. So this stock may not go above 920 immediately. Some smart money exited between 840- 880.
So their could be high probability one could see this stock near 840. It gave a black candle with high volume. As per graph it could touch 830 very soon.
Bearspread strategy:
Buy 860 PUT around 19/- and sell 820 PUT around 7/-.
Maximum profit potential 14000/- maximum loss could be around 6000/-
One can reduce loss by selling 920 CALL around 4-5.
Risk takers could buy 840 PUT of AUROPHARMA around 12, maximum loss could be Rs. 6000/-. But one can book profit immediately tomorrow around 18-20 and need not wait till expiry.
Disclaimer: This blog does not take any responsibility of your profit/loss
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