Option Chain Analysis - Open Interest Analysis, Implied Volatility & Volume Analysis

Option Chain Analysis - Open Interest Analysis, Implied Volatility & Volume Analysis

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Welcome. To the option chain analysis video so, today's, video is a follow-up video of open, interest put call ratio and, implied, volatility, video that was released earlier in, this, particular, video we will be looking at application, of concepts we discussed earlier and I will be showing you two new concepts, with respect to open interest and implied, volatility, in options, trading in case, you have landed directly on this video I would strongly recommend for you to start with part 1 of option, trading strategy series once, you finish this video link, to all these videos is in the description, box below link. To the basics of open interest analysis, put call ratio and, implied. Volatility, should come up at top end of your screen in these, video I have covered basics, and rules for option, chain analysis, do, watch these videos if you haven't already. So. Today we will take up November. 2018. Series. Of nifty based on what we discussed in the earlier videos last. Two videos on option, chain analysis were more about basics, of open interest implied. Volatility, and put, call ratio and, some of its applications. Today's. Video is entirely, about application, of what we discussed earlier and I will be telling you which data points, are the most important. Among open. Interest IV put call ratio and price I'll. Also be showing you two new, concepts, that are vital for option, chain analysis, and price analysis, so, these two concepts, are number one impact, of a single session on price trend and how, to use cumulative, open, interest chain charts to, stay on track and number, two how, to approach, option, chain analysis, in the last seven days of a series leading up to the expiry, these. Two important, concepts I had left out in the previous two videos as, I, wanted to cover. The basics first and I wanted you to understand, them thoroughly by, the time you end this video you will have a deep understanding of how to link open. Interest implied, volatility, and price together for, an entire, trading, series, again, I will strongly, encourage, for you to watch this video multiple, times to, learn these concepts, thoroughly so let's get started so. Let, us first begin with November 2018, expiry, series for P which lasted, between October, 26th, to 29th, November, in this, video I have explained, open interest analysis, implied volatility, and price, analysis, from October, 29th, to November, 28th now. Towards the end of this video I will explain how to analyze, option, chain and price, in the last five to seven days of a series in the, first segment of this video we will be looking at open interest and price and in, the second segment we will link this up with implied, volatility, so. The chart that you see in front of you is a snapshot of open interest on October 29th, upper, panel that you see is the total open interest for the series whereas lower panel, is open interest change, for the day range. For the market as per open, interest is 10,000. To 11,000. So, at the beginning of the day price was at 10000, 75, as, session, progressed, price moved from ten thousand seventy five to ten thousand, 275. We will come to the price analysis segment, in the late next slide but. Look what has happened at ten thousand, ten thousand one hundred and ten thousand two hundred P as, price, has moved higher strong, open interest edition was seen across. All these, three strike prices, some. Reduction, was also, seen at ten thousand, one hundred call option and ten.

Thousand, Five hundred call option if, you look at the price analysis, for October 29th, again strong demand, candles are present on the chart strong. Demand candle, is when range of a candle is wide and close is strong, towards the high point or low point of the day in the chart in front of you I have posted two separate, candles that represent, a strong demand candle and a strong supply candle, to, depict the price action for October 29th, I have posted candle, volume, chart, for you where. Width of the candle is dependent. On volume, of that candle the higher the volume the wider the candle, now, candle, volume charts are different, from candlestick, charts as they incorporate. Volume, within candles, again this, form of charting is a very, powerful concept, it's. Very clear from the chart that the to demand, candles, that we have here have, had significant. Volume associated with them we, are therefore taking, confirmation, from interest. Price and volume, again, this is something I did not include last time in the, two videos I released as I, did not want to introduce too many things at once but I hope now you can see how powerful this concept, is in terms of visually, seeing price action for a day and then, linking it with open interest activity, for the day implied. Volatility, part as I said, we will be covering few, slides later. This. Job that you see in front of you is the open interest snapshot, for October 30th now, based on open interest range for price still remains at ten thousand, and eleven thousand. Price, as of 29th, October, that is previous session stood, at ten thousand, two hundred seventy, five now. During the day when price struggled, to move above, ten thousand three hundred strong. Open, interest edition was seen at ten thousand, three hundred call option, open. Interest edition was also seen, at ten thousand, and ten, thousand, two hundred put, option on any. Given day if you had looked at this data of open interest you, would conclude that resistance, for the market is at ten thousand, three hundred and it, would be difficult for market, to move higher however. Before, reverting, back to this data point let us move first to price action analysis, if, you look at price action analysis, for October thirtieth while, price has moved lower, there, is no significant. Supply candle, that is visible also. Price in its previous session has, formed, a structure, of higher high which, in itself is a bullish, indication. Despite. A fall, in price here two. Things you have to consider number, one lack of volume. And number. Two both calls, and puts have witnessed, open, interest edition if indeed. Price has to move lower then, our next session price, would need to move lower with high, volume, and further. Open, interest edition would need to happen at calls preferably. Along. With open interest reduction, at puts I hope, this particular point is clear so, technically you have to understand, one thing that sustained, fall, in prices, almost always, requires.

Strong, Volumes, price. Can, rise with limited, volume. Especially in the middle portion of a trend but for price to fall on a sustained, basis, lot, of volume is required, do remember this important, concept of price action. This. Chart that you see in front of you is the open interest snapshot, for October, 31st, now, based on open, and interest range. For price has now moved from 10,000. To 11,000. To, ten thousand, to ten thousand. Seven, hundred range. Shift has seen here for the first time now. Price as of October, thirtieth stood at ten thousand, two hundred fifty now. Whenever you see range shift happening based on open interest which is in this case you. Need further confirmation, from, price now. What happens is that at times range shift happens, but, there is no follow-up or follow-through and therefore. You should only draw conclusions. Once price, confirms, so. During the day price, moved, towards, ten thousand, three hundred fifty and while, this was happening strong, open interest, addition, was seen at ten thousand, two hundred P ten. Thousand, three hundred P and ten. Thousand, four hundred P this, was also followed, up by open. Interest reduction, in ten thousand, two hundred call, option and ten. Thousand, three hundred call option if you, look upon, interest addition has also happened, at eleven. Thousand call option but, like I explained, in the previous videos, this, has to be ignored. Always. Remember that when open interest build-up, happens, at one, side of the market for, sustained, trend to develop open, interest, reduction. Has to happen on the other side of the market within one to two sessions this, is a very important, rule which, I had mentioned in the earlier two videos as well let. Us now look at price analysis. For this particular, session that is October 31st if. You. Look at the price analysis, for October, 31st price. Has moved, significantly. Higher, after, we have had a strong supplied. Candle, now, volume on the downside initially, was strong but, as open, interest build-up increased, at puts price. States have come back on back of strong, volumes, this. Was again a bull, signal if you, see prices. Also completed, a structure, of higher, high and higher, low. While. Closing at. 10350. For the day the, caveat, here is how, you should deal with the session like October, 30th, where, one day's open interest activity, was suggesting, resistance.

Ahead And then in today's session price. Has moved higher, such. Days usually confuse. A trader and there should be a way to deal, with such, sessions I'll, just show you what I mean here so look what has happened on October 31st price, has moved up on October, 30th. Price. Actually, moved down. With the kind, of consolidation, makeup but, look what had happened in the open interest segment there was huge open interest build-up at ten thousand, three hundred four hundred call option so. Typically when such days happen, traders do get confused, and miss. Out on these, sessions that usually, show up after such sessions and this, is what I am going to address in this particular, video in, the slides ahead I will show you how, to avoid, these. Sessions, this. Is also something that I had left, out in the last two videos. This. Chart that you see in front of you is the open interest snapshot, for November 1st now. Based on open interest range for price still remains at ten thousand, and ten, thousand, seven hundred price. As of 31st, October, that is last session closed. At ten thousand three hundred fifty now. During the day price consolidated. Between ten thousand three hundred seventy five and ten, thousand four hundred thirty now, as price, was consolidating. Put. Open interest edition was happening at ten thousand P and ten, thousand, four hundred P mainly, however. Again. Open, interest Edition was happening at ten thousand, four hundred call option so, again this is very similar to what we saw on October. 30th, where. Open. Interest edition was happening, in calls, and yet on, October. 31st we saw market, moving higher so. What I will do is let us first move to price analysis section, for, this particular day and then I will show you how. Open, interest analysis, of such individual. Sessions, should, be analyzed, so that you remain on the right side of the market. If. You look at the price analysis chart for November first price has just remained, in a range no, significant, price activity has taken place while price has moved in a range and while. We have seen open interest addition, happening in calls if, you see there, is no strong, demand, or supply candle. That has played out in this particular range so. Now we come to the most important, point that is how to deal with such sessions where price is suggesting. Mere consolidation. And open. Interest analysis, were suggesting, something else in terms of open. Interest Edition happening, in calls, now, such sessions usually, throw traders off track, and now, I will show you how to deal, with such, particular sessions, in the, last two videos I had introduced you to the concept of cumulative, open, interest chain charts however. I left, out why it is useful to use cumulative. Charts and when to use such, charts, in options, trading, the. Main reason, to use cumulative charts, is to see the underlying, bias, of the market, while, limiting, the impact, of single. Sessions, on underlying, market, and its trend this, way as a, trader you will not get influenced, by one single session and you, will always stay with the underlying, trend let, me show you how, this. Chart that you see in front of you is the cumulative open, interest chain chart between October, 29th, and November, 1st now. Let us recollect that on November 1st strong. Open interest edition, was seen at ten thousand four hundred call option similar. Activity, was also seen on October, 30th if you, look at the cumulative open, interest chain chart it is clear that as price, has moved from ten thousand, to ten thousand five hundred strong. Open interest edition has happened across put strike prices also, between. Ten thousand and ten thousand five hundred if you look at net open interest reduction, that has only happened in calls, if, you, encounter sessions, like November first you.

Should Realize that such, sessions. Should, be ignored as the overall, trend, of open, interest activity, still, suggests, underlying, bullishness. Also. We, have seen from price action analysis, that overall structure, of higher high was still intact and on, the upside we have seen strong, demand, candles, on candle, volume charts so, whenever you see a negative sessions, in term of open, interest or price first. See if both are confirming, the same and then. Look at cumulative open, interest chain chart to, see if underlying, trend is intact, or it, has changed, don't. Draw, conclusion, based on any one, single, session so. I hope now you see how powerful this concept, of cumulative open, interest analysis, is and how. To use this in your own analysis. I will be showing you in slides ahead how to use this again and again because, such single, sessions, do, come up repeatedly in, market. On on. Each series basis, I know, this, concept, will confuse, you a little bit in the beginning but once, you finish this video watch it again as you will understand, this concept even better with each viewing. Session, what, I will recommend is take a screenshot of, all these charts and then. Watch. This video again, this. Chart that you see in front of you is the open interest snapshot, for November 2nd now, based on open interest the range for price still remains between ten thousand, and ten thousand, seven hundred price. As of November 1st that is the previous session stood. At ten thousand four hundred thirty in today's. Session price, has moved up to ten thousand five hundred twenty about ninety points higher and strong. Open interest Edition has happened at ten thousand five hundred put option and ten, thousand six hundred put option we, have also seen open interest reduction happening at ten, thousand, four hundred call option ten thousand five hundred call option and mainly. Ten thousand six hundred call option now. Had it not been for the cumulative open, interest chain charts, we, would have never known the underlying, net bias of the market and would, have assumed, November. First session, as a negative, one given, how open. Interest Edition, had happened at ten thousand, four hundred call now.

Given That upper, range, hats moved. From 11. Thousand, to ten thousand seven hundred November. First session would have been viewed as a negative, one if one. Would have looked at it from stand-alone. Basis, now what I mean here is that couple of sessions back we. Saw that range from eleven thousand had shifted to ten thousand, seven hundred now. Someone who's trading in real time and who's, not looking at cumulative open, interest chain charts had, he seen strong. Open. Interest build-up at ten thousand four hundred call option, he, would have clubbed the open interest information, with, this range shift information, and would, have assumed, that market, is heading, lower so, this is where cumulative, chart is so powerful, as it, keeps you on the right side of the market again, and again let, us now move to the price analysis segment. For November second. So. If you look at the price analysis, for November second price, has moved higher. With the gap and then, consolidated. At the top end of the range again, the structure of higher high and higher low is still valid and trend. Of price is clearly, on the upside, if you, look at the candle, volume, chart strong. Demand candles, are easily, visible and relatively, there is no strong, supply. Candle, therefore. Price, along. With open interest have both indicated, a strong session. For the market in the direction of trend and do, not underestimate the, importance, of volume, here because. Repeatedly, we have seen that whenever price is heading, higher it, is heading higher with strong, demand candles, which, are easily visible, on candle. Volume, charts. This. Chart that you see in front of you is the open interest snapshot, for November, fifth now. Based on open interest range for price is at ten thousand, and eleven thousand. Range. Shift has happened on the upside if you see because earlier range was ten thousand, to ten thousand, seven hundred price. As of November second that is previous day stood at ten, thousand five hundred eighty now. As price, consolidated. Today's strong open interest edition was seen at eleven, thousand call option this, was the reason for range shift happening, in the market again. A clear indication. Of high levels to come given how open. Interest and price, structure has shaped up now. Whenever you see range shift suggested. By open interest try and see if recent, price, trend is confirming, the same and if, data of price and open interest will confirm the same in the next couple of sessions again. This is a very simple, yet effective, concept, when, it comes to option, chain analysis, let, us now move to price analysis segments to understand, November 5th better. If. You look at price analysis for November 5th price. Has moved lower with a gap, and then consolidated. To, close higher, near the November, 2nd top, end of range now, towards the end when price moved, back up volume. For the candle, was highest, for the day again, this is a very positive sign, this. Was again a bullish, session, it may not have reflected, in open, interest or price, as such but, the fact that price, moved, up after. Gapping, down along. With the range shift data that you saw on open, interest Club. Together this suggests that session, was, in favor of buyers and the. Underlying trend of the market which is up is still, prevailing. This. Chart that you see in front of you is the open interest snapshot, for November 6th now, based on open interest range, for price is still at 10,000. To 11,000. Price, as of November 5th that is previous session stood at ten thousand, six hundred in today's. Session that is November sixth price, attempted, to move higher and then closed lower towards. The end at ten thousand, five hundred twenty down. About 80 points from the previous session as. Price, fell open, interest edition was seen at ten thousand, seven hundred call option, now, again on standalone, basis, this, would suggest strong, resistance for the market again. Traders, who are looking. At this data point would, be concluding. That trend, might change in the market however, let. Us see what cumulative. Charts suggests, before. We move on to cumulative chart let us first look at price, action for November, 6th. So. On November 6th price starts, strong, as reflected.

Here, And then. It retraces, back strongly. To close near, the, November, 5th range if, you look at the supply, candle, it was backed by strong volumes. Again. Someone. Who looked at November 6th, open, interest activity, and price. Activity, would, have concluded, that odds, of price moving, higher would be largely, limited. However. That's, not the case let. Us again, revisit, the powerful, concept, of cumulative, open, interest change chart to, see how things shaped, up. If. You look at this cumulative change, chart it's, pretty, clear that. 10,500. Would, act as a very, strong, support, for the market it's, also clear that region, between ten thousand three hundred and ten thousand five hundred on the put side has. Attracted. Maximum. Open interest addition and this, will be acting as a strong, support, for the market even, though we have seen price, falling, on November. 6th while. Individual. Sessions, can be bearish. Overall. Impact, of same, on underlying, trend largely, remains, unaffected. I hope, now you see why you have to avoid. Extrapolating. The ill effects, of single, session on an entire, series, cumulative. Charts always, keep you on the right side of the market do, include, this concept, in your trading, now, some of you might be questioning, here that. While open. Interest change, has, happened on puts, it has also happened. On calls, there is no reduction as such well. The thing is yes. Open interest edition has happened, on puts, but, reduction, has happened, in calls between ten thousand and ten thousand, five hundred the. Open interest edition that you see, here, at out-of-the-money, strike, prices for calls it, may not be viewed as resistance. Mainly. Because you have to see, relatively. What puts. Have done and in. Compared. To puts what, calls, have done I hope, now you see how you have to analyze both, these data points together. This. Chart see in front of you is the open interest snapshot, for November 7th now, based on open interest range is at ten, thousand, and eleven thousand. Price, as of November sixth that is previous day stood at ten thousand five hundred fifty so. Just one hour of trading was recorded, in this session due to this being a truncated, session it was a moral trading session so, during this session we have seen open interest Edition, was seen mainly, in puts.

Price-wise. Nothing significant, happened again, it was a truncated. Session so price opened, higher and then. Stayed within a range for the next one R till the market closed no. Major change, as far as open, interest or price, analysis, is seen for, the time being in this particular day and observations. For November, 6th still, hold true, so. This is the open interest snapshot, for never 9th again. Based on open interest range for price is at ten thousand, and eleven thousand. Price, as of November seven that is the previous day closed at ten thousand six hundred thirty so. As price consolidated. With an upward bias in this session open. Interest edition was mainly seen at ten thousand one hundred put option along. With open interest edition at ten thousand seven, hundred ten, thousand, eight hundred and eleven. Thousand. Call option, so. Price, is at, ten thousand six hundred levels, so you don't, have to bother too much about what you see at ten thousand or ten thousand one hundred put option or call option strike prices but. Interestingly what, has happened today is while price, has consolidated, with an upward bias, more. Open interest edition has seen in calls. And there is no significant. Open, interest edition, ad puts, so. Typically when price consolidates. With the upward bias there has to be some open interest edition ad puts in case market has to in, case market is building a strong support or. A new base but this was not seen in this particular session of November ninth so. Based on price analysis, nothing much had changed structure. Of higher high and higher low was still intact and no, significant. Volume, was seen in today's session price. Largely, consolidated. In a range but remained. Positive. This. Chart that is she in front of you is open interest snapshot, for November, 12th so, based on open. Interest range for, price is at ten thousand, and eleven thousand. Price, as of November ninth that is the previous day stood at ten thousand six hundred fifty in, this, session you've seen price has moved lower, from, ten thousand six hundred fifty to ten thousand, five hundred there. Was open interest edition that was seen at ten. Thousand, six hundred call option, ten thousand seven hundred call option ten, thousand eight hundred call option and eleven.

Thousand Call option, so, in terms of open interest activity. This session does look very negative. Also, recollect. In the previous session there was no open interest edition and puts and mainly. Open interest edition happened, in calls, there's. Also been open interest reduction, in ten, thousand, five hundred ten, thousand, four hundred and. Ten. Thousand, three hundred put option we'll, take a look at cumulative open, interest chart to see if something has changed before. That let, us see how price, analysis, shaped up. So. In this particular session price, moved, lower from ten thousand six hundred fifty to. Ten thousand, five hundred if you look at the candle, volumes, there are strong, supply. Candle, visible. On the chart two, distinct, supply candles, are visible, on the downside, which are signifying, strong. Downward, momentum for, the day so. This session is again, very similar. To what we saw on October, 30th, and November. 1st and November. 6th the, important, question here is whether this day, or this session is important, or is it just an, aberration, in an ongoing trend. Well. Let us now go back to the cumulative interest, open interest change chart to check this out price. For this particular session closed, at ten thousand, five hundred twenty five. So. This is the cumulative open, interest change chart that you see in front of you with price at ten thousand five hundred twenty five maximum, open interest is at ten thousand five hundred four puts and for calls it is at eleven, thousand, while, price has closed negatively, for November 12th there is no, significant. Change in terms of open interest structure, now let me explain this, to you while. Open interest addition at ten thousand, five hundred and eleven thousand, is strong it's, important, to note that open, interest reduction, is mainly, noted in ten thousand four hundred call option and ten. Thousand five hundred call option, if price. Indeed, had to move lower such. Strong support, at ten thousand, five hundred put option in terms of open interest shouldn't. Have existed, also. With. Price at ten thousand five hundred twenty five you, are seeing no substantial. Addition, in open, interest in calls that is for ten thousand 600, 700, 800 or, 900. The, only place where you see open interest addition for calls it is at eleven, thousand so. Clearly there are two things missing here one there. Is no resistance, in immediate. Call strike prices that you see and there. Is significant, support, in terms of open. Interest addition at ten thousand five hundred put option along. With the reduction that you have seen at ten thousand four hundred and ten. Thousand, five hundred call, option, so, I hope, this particular, point is clear that, from cumulative, open interest chart it, is relatively. Easy to stay on the right side of the market despite. Of having a negative, session, like November, twelfth now, it is easy to, see it now in hindsight I will. Acknowledge this, but. This is all about, practice, the, more you practice these concepts, the, more you see this playing in real time and the. More better you get at it eventually. There will come a time when this will be playing out in real time and you would know that how, you have, to stay on the right side of, the market so, again pay, attention to, this cumulative open, interest chain chart this. Is a extremely. Useful. Concept. So. This is the open interest snapshot, of November, 13th range, as per open interest is, 10,000. To, 11,000. In the, previous session we have seen that price has closed, lower at ten thousand five hundred twenty. On November, 12th in this, particular session you've seen significant. Put open interest Edition, that has happened at ten thousand two hundred ten thousand three hundred ten. Thousand four hundred and ten, thousand, five hundred put option this, is exactly. Opposite, of what we saw in previous session, open. Interest reduction was mainly seen at ten, thousand, five hundred call option ten thousand six hundred call option ten, thousand, seven. Hundred call option and at. Eleven, thousand call option so, had it again, not been for the concept of cumulative open, interest change chart one, would have assumed, that previous. Session that is in the number twelfth would, be extremely, negative, for the market and they, would have been whipsawed, today considering, how bullish, this. November. 13 session, looks once. Again cumulative open interest change charts helps, one to stay in the, right direction of, market.

I Can't. Begin to emphasize, how important. This concept, is in overall. Option, chain analysis, and this, is almost never, covered, anywhere. And I'd and I have not seen traders using this that often, so. This is the price analysis, chart for November, thirteenth price. Staged a remarkable, comeback to close higher on back, of strong momentum, if you look at the candle, volume, charts, clearly, one strong, demand, candle is visible, on the chart towards, the end of the day so, this strong demand, candle, essentially, countered, the strong, supply. Candle, that you saw in the previous session, price, has essentially. Moved back in a range had, it again not been for cumulative open, interest change chart, yesterday's. Session would have been considered, as very negative. As price. Had, also, breached this previous. Pivot, point so, I hope this particular, session is also, cleared to you so. This is the open interest snapshot, of November, 14th range as for open interest is 10,000. To 11,000. In this, session price has largely, consolidated. And closed near November. 13th price level of ten thousand six hundred sixteen, while. Consolidation. Happened ten, thousands, 600p. Added, the most open interest followed. By. 10900, call option so. 10200. Put option and, 10300. Put option did see open interest reduction, but, as seen in cumulative, charts, such, out-of-the-money, open, interest activity, inputs, are in call has, limited, effect over the very short term and these should be ignored, if, you, look at the price action chart, clearly, too strong, supply candles, are visible. But, open interest activity, was not bearish. And these, two supply candles, have formed, within. A structure, of higher hi always. Remember, that you are looking for price and open. Interest confirmation, and one either of the two does not confirm, stick, with the underlying, trend if with, trend you still have doubts then, do revert back to cumulative, open interest chain charts, to be certain, be, objective, in this case and don't let your emotions take over so. Let me repeat check, price analysis, and then, look at open interest analysis, if you, cannot, draw any conclusion. Check, cumulative. Open interest change chart there's, one key element missing, here and thatis, of implied, volatility. But, I will come to that towards. End of this, video. This. Is the open interest snapshot, of November, 15th range, as for open interest is 10,000. And 11,000. As price, consolidated. In this session between ten thousand six hundred and ten thousand seven hundred open. Interest edition, was seen at ten, thousand four hundred put option and ten thousand six hundred put option some. Open interest edition was also seen at ten. Thousand, seven, hundred call, but, on a cumulative chart, this would be irrelevant, open. Interest deduction, was seen at ten thousand, five hundred call option and ten. Thousand six hundred call option, important. Point here is that price has consolidated, while. Open, interest, build up at puts, has increased, if. You. Look at the price analysis, chart for November 15th price, has moved up by, about 20 points with respect to previous session. No significant, price action as such was seen demand. And supply candles, were largely absent, similar. To open interest data price data also suggests. Consolidation. Within a structure, of higher high and higher low, while. Dealing with open interest and price, analysis, you'll, have to be mindful of sessions, which create, doubt, in your mind you. Will have to then use cumulative, open interest chain charts, along. With price analysis, to keep such, sessions away, from altering, your overall, opinion, and position. In the market, this, actually essentially, forms, a very, crucial aspect. Of option. Chain analysis, that, is often, overlooked. So. This is the open interest snapshot. For November 16th, range, as per open interest is now at ten thousand, and ten thousand, eight hundred if you see upper, end of the range has now come down from eleven. Thousand to ten thousand, eight hundred, so, again recollect whenever you see such. Range, shift always, be mindful, and always, look for confirmation in, the next few sessions so. As session, progress today open interest Edition was seen at ten thousand six hundred and ten. Thousand, eight hundred P price. Actually closed at ten thousand seven. Hundred that is about sixty to sixty five points higher from the previous session and as, price, moved up open. Interest reduction, was seen at ten, thousand, five hundred and ten. Thousand six hundred call option again, this was a positive sign, price. Analysis, for November sixteenth was positive. Demand. Candles were in, place as price, moved sixty points higher you can clearly spot to, demand candles, here and structure. Of higher high and higher lower still sustaining, the. Important, thing that you have to note here in this. Particular session is that of range shift I'll be, explaining this particular, point in next few slides but, always be mindful whenever, you see range shift happening in market, in terms of open interest and then.

Try And look for price, confirmation. So. This is the open interest snapshot, of November, 19th, range, as for open interest is ten thousand, and ten, thousand eight hundred in. This session price has actually moved higher by 80 points, as prices. Moved from ten thousand six hundred eighty to ten thousand seven hundred sixty open. Interest edition was seen at ten thousand five hundred put option ten, thousand six hundred put option and ten thousand seven hundred put option, one. Thing to observe here, is that despite. Positive session, today and day. Before open. Interest edition has, happened, mainly at puts but, range for the market has still not expanded. On the upside ten, thousand eight hundred is still the upper range for now. Price. Moved higher on 19th November and actually closed at ten thousand, seven, hundred eighty the. Price structure was good and well, within the structure of higher high and higher low that we have been following, before. We move to implied, volatility, let, us recollect, till now what we have done from, October, 29th, to November nineteenth we have covered open interest, cumulative. Open interest change and price. Analysis. Now, between, November. 20th. And november, 29th. So. This chart is not complete, what I have done is from, here on November, 28th to November 29th, I have summarized, the chart here so. Between November, 20th, and november 29th. That is the expiry, price, has dipped from ten thousand seven hundred eighty to ten thousand five hundred and it has again moved back to ten thousand, eight hundred however. Between this period the, way you have to analyze, open, interest has to change now, this is the second, important, point of this video that is how, to cover open, interest and implied. Volatility, in the last seven, days leading, up to the expiry, this. Again I'll be taking up in the next few, slides so what I am doing here is that I am ending the open interest analysis, at November. 19th, because. These last seven sessions cannot. Be analyzed, this way there, are some changes that you have to make and that is what I'll be covering up, now so, before we move forward to implied volatility, section let, us now see, what cumulative, open, interest charts suggests this, is a snapshot of net open interest change between October, 29th, and November, 20th so. The net call, open interest change is 2.8. Million and the, net put open interest change is 9.5. Million clearly, the, bias as per open interest and price, analysis, is, bullish, between, October 29th, and November, 28th this, is also one of the reasons why after November, 20th you have seen price dipped, for 200 points and then again, move towards. This particular range, this, was as suggested. By cumulative, open, interest chart so, let us now look at what happened, with nifty, implied, volatility. Between, the same period that is October 29th, and November, 20th if you want you, can take individual. Implied, volatility. Of options, but, I would suggest to go with nifty, IV as this, is widely reported by brokers as well and is much, easy to procure nifty. IV is not the same as NSE. India VIX try, and use nifty, IV, as it is calculated. Using front. Month options, and it, represents, future, volatility, well, now, lot of you have asked me to Ares on this just. Prefer using nifty, IV for now and don't. Track individual. IVs move. To individual, IVs, only, once. You become more, experienced. In handling, implied. Volatility. So. Let us look at what happened to IVs, between, October, 29th, and November 20th so, this is the nifty IV chart so. Nifty eye we moved from nineteen, point eight one to. Fifteen. Point nine and, let's. Recollect, that neck put open interest change was nine, point, five million if, you note even, calls have added, open, interest but relatively. Look at how puts, have done open. Interest reduction, if you, see was mainly seen in calls between ten thousand and ten thousand, five hundred level. So. The relative analysis, of how calls, and puts behave. Is what makes open, interest IV, and price, analysis, very subjective so, what. We have seen here is that we have seen increase, in open, interest inputs. Along. With fall, in implied.

Volatility. As session. Has progressed, so, if you remember this was ruled 2 when it came to price and open, interest analysis, along. With implied, volatility. Analysis, and what, did rule to suggest rule, 2 suggested, that whenever increase. In open. Interest inputs, happen, along. With fall, in implied, volatility. And price. Confirming, the same that indicates, fresh, short, formation, or writing. Inputs, if you. Also note I have left out put, call ratio and, I will come to that in a bit but first let's, see how to deal with price, open. Interest analysis, and IV. In the, last seven, days leading, to expiry. So. During the last seven days leading, to expiry always, combine, open, interest for, current, month and next, month you. Can also view current data and next, month separately, if you don't want to combine both however, in your open. Interest analysis, you will have to start looking at next, series data as well. To understand, the bias, of participants. In the market now. Quite often there is a subtle shift in how participants, are positioned, and this, can only be seen if you combine, both series, together in the last seven, days so. Avoid looking at put call ratio of the next month till expiry, happens only stick, with the current month PCR, that is put call ratio there. Will also be no, change in how you look at IV, so, whatever IV data you are getting for the month stick with it change, is only applied. To open. Interest, as, far as price analysis, is concerned, only, focus. On current, month charts, till, the point expiry, happens. So. Let me now give you some practical, tips, as far as option, chain analysis, is concerned so, heading forward it's important, for you to see which combination works, best for you what, I would suggest is that always pay attention to open, interest cumulative, net change charts, these, charts, will always, help you stay in the right, of trend we, have seen countless times, in this video itself, how these charts, have made us stay on the right side of the market this, is a very powerful concept and try to master this, concept. In particular when, it comes to option chain analysis, I think, price, analysis, open interest analysis, and implied.

Volatility. Are the most crucial, ones this. Is the combination, that has worked best for me and I practice, this on a regular basis, I would, actually assign price, analysis, about 40%. Of weight, open. Interest analysis, about 30%. Implied. Volatility, about 20%, and PCR just about 10%, remember. One thing that PCR, should only be taken as a supplementary. Indicator, and my in my opinion it is the least important. Out of all these that we have discussed and this, can be ignored as well in. Case you're a beginner, in option chain analysis, you, can start, to consider, PCR, at a later stage if it causes confusion at, present, the, way you have to proceed here is to try and watch this video two times today and then. One time tomorrow this, is an enhanced, way to learn a concept and I have highlighted the importance, of doing this earlier, as well I will, be uploading more videos on, option, chain analysis, but, those would be the trades I take and when, I take those trades I'll make a case study out of it whether, it ends up in profit, or in, a loss the. Key here again is to practice, and to, take notes and to, always, pay attention to the concept of cumulative open, interest chain chart so. If you find this video were that kind kindly, consider sharing it and kindly. Consider hitting the like button as well so, thanks a lot for watching this video guys in case you have any doubt do let me know in the comment section below see, you next time take care and be safe click, on the subscribe button and pellicle. Instantly, notified, when a new video is uploaded thank. You for subscribing.

2019-02-19 22:21

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Comments:

Volume candle works on nifty futures. Right

If adjustment does not happen within 1-2 session with respect to PE support, then expect further downside.

+TradeWithTrend on monthly option chain good support is seen @10700pe where as nifty far below the support. Hope nifty will retrace.

Yes Tessy. Spot candles have no volumes. You'll have to check futures.

Second wtever the chart plot on bloomberg — on right side is net oi( is it not the cumulative chart or. ?????uf not not which is the cumulative chart——- really confused please explain sir

Use this, its free resource. traderslounge. in/ivrank-nifty/

We have tried for implied volatility chart but failed not proper,,,,, can u send us a link sir

No it is not shown in Bloomberg Quint You will need websites like Sensibull to display this.

No sir I dont have any confusion but I m not able to find out cumulative chart and I want to ask that the chart shown in Bloomberg quint option chain is cumulative or not

Thanks yshoda hospital I am asking which chart in video is confusing you. Kindly let me know.

TradeWithTrend I m usually see nse option chain data but since sometimes bloomberg quint option chai data (graphical chart only)

Which chart are you referring to? At what time frame does it appear on the video. Let me know.

Sensibull has a subscription fee.

Sensibull is free or should be purchase

Good vedeo but not able to plot cumulative chart and not able to trace it from nse data please make a vedeo

Thanks so much yshoda hospital Just use Sensibull software if you find it difficult to compile data.

Thanks a lot for your effort and time. I am watching this video repeatedly to handle the data in real time. I can get the OI details from sensibull (zerodha) but not IV chart. Can i use the data from NSE option chain (Average of call & put ATM IVs)?. Please suggest.

Thanks so much kkmb Just google "Nifty Implied Volatility" chart and you will find many resources.

Hoi sir, thanxx for this video. I would love if u analyse Jan 2019 series were everyone got trapped when Nifty Broke 11000 and suddenly fell sharply.i would love if u analyse what happened there.pls just once but important one.tnxx

Thanks so Much sagar nivaragi. It was not a trap. Options was indicating trouble ahead. Go through this mid week video I did. https://www.youtube.com/watch?v=0dz5Qgq5tnU Hopefully this will help you understand better.

Amazing Sir, Have watched multiple times and watching again and again. Great Work. Please suggest where to get the nifty/Stock IV chart. I use Zerodha platform. Thanks a lot for all your great work.

Thanks so much Shubham K Try Zerodha Sensibull. You will get all this information. Else Google "Nifty Implied Volatility" chart and you will get the data as free resources on this is available. Hope this helps

I am using options chain for stocks buying and selling with very good success ratio. Although I know the inside of options chain but this video is best ever I have seen on YouTube till now. Great work.

Thanks so much Ravinder Singh for your kind words. Hope you have watched the remaining two related videos as well. Option Trading Strategies - Option Chain Open Interest Analysis https://www.youtube.com/watch?v=eOBndPzxb2A Option Trading Strategies - Put Call Ratio, Open Interest, IV https://www.youtube.com/watch?v=087Jxe9OxmU

Good evening brother, wish to ask sometime earlier you posted a video for charting software , my query is trading view is costing around 10 USD per month and data from nse is around 6 usd per month as per website, any experience whether this data is real time, one draw back wth trading view is no fno . Advance thanks

Sure let me know.

+TradeWithTrend yeah I'm trying as trial I'll update in here my observations

Haven't tried it as such. Take a trial. They must be offering it.

+TradeWithTrend OK thanks for info, they are all costing above 3k per month., whereas trading view is costing 1500 including market profile with nse data. I wanted to know the reliability of real time data

I personally use Amibroker and Metastock and Sierra chart. All three are good. Amibroker is highly customizable and pretty good.

+TradeWithTrend in general for a platform which is reliable in data plus charting included. I'm into smc global securities, my cousin is associate with them. charts are real night mare but orders punching is reliable as they are not discount brokers, but I'm getting brokerage equivalent to discount brokers.

What exactly are you looking for? Volume Profile?

Cumulative data is the data of all 3 months of option or just current month.

Hi Chetan, have used for current month only.

Hi, I started tracking OI last one week. (in fact, I have try to relate OI movement with Nifty current movement during the day). One clarification whether I need to compare current week OI with Nifty SPOT chart or FUTURE chart. Thanks.

Thanks Ram.

+TradeWithTrend Thanks for your immediate reply. Have a nice day.

Won't matter much. You can refer to OI and spot chart If you want. Depends on your preference.

Great video. Sir Please confirm can we apply same analysis on any FNO stock too.

Thanks Pardeep. Yes it can be applied for stocks as well.

Also implied volatility chart

Have replied below Mukesh

From where do we get cumulatice open interst chart

NsE website to excel sheet. Else you can also try Sensibull platform for options.

Seen it once. shall watch it again after absorbing it.

That will certainly help Dilip

very nice video to watch and a lot of to learn... where do we get implied volatility charts...and cumulative open interest..as we get separate IV for both puts and call on NSE..

Most welcome

+TradeWithTrend Thanks for suggestion...

Thanks so much Yogesh You can try Sensibull. Good platform for options.

Great analysis. Where do you get candle volume charts

Thanks Dilip You can try Amibroker or Metastock software.

Thankyou for this highly insightful video.Request you to tell in detail how to record the data EOD and what to look out for.Since some of us cant keep plotting graphs,will collecting the data in figures from NSE be sufficient.

Thanks so much Avinash Jawalkar There are software's that can do this for you. Try sensibull if you want. Has all the information. I would suggest viewing data on graphs. Visual form of data is always more helpful.

Thanks you sir for sharing very premium content and knowledge for free These things are not told even in paid courses Sir you are very very clear in fno analysis teaching Thanks you so much sir I have learned many things from your videos teaching sir Many doughts cleared sir clearly Thanks again God bless you you May all your dreams come true

Thanks so much Sandip Barokar Please do share the videos if you benefit. This is the only way knowledge can reach all. Thanks for your kind words

Sir, thanks for amazing series on options and oi. My query is regarding nifty 50 stocks option. Can we do similar analysis for stocks as well? If yes, cumulative oi concept still remain valid for them, as T+1 and T+2 months option data is usually not having much data points? Also how can we use IV in case of stocks, we need to look at individual strike level? Thanks in advance and please keep making these amazing videos

Check out Zerodha Sensibull. You will get all the info you want.

My current broker is Zerodha. One more doubt can we use change happening in IV during intraday ? Applying same rules that you mentioned in previous video?

Thanks so much Ankur Maheshwari Yes you can do similar analysis for Stocks. But prefer current series only. You need to get Stock IV data separately. Who is your broker? Some brokers provide this info these days.

very useful video sir...thnx for sharing could you pl explain about cumulative OI , i mean it is just chang in OI on a perticular stike over a period of time or all 3 expiries data cumulativly ?

Thanks so much Sam Sindhi You can stick with current series only if you prefer.

It's going to be tough tracking OI change because weekly OI Change is showing 10700 as stiff resistance where as monthly OI change is showing 10700 a good support point. Confused which one to track.

+TradeWithTrend thank youùuuuuuu

No issues. Keep them coming.

Depends how house define intraday. If strictly on a day to day basis, then 15 min is okay.

+TradeWithTrend I love OI analysing. So keeping on asking silly questions.

No Tessy it's not. Don't mix time frames. Weekly changes too fast and Monthly reflects trend better. Consider weekly options as short term and monthly options as long term. Learn to compartmentalise the two.

sir, it is very nice but some how dificalt to undersand make how easy to understand

Thanks so much pravin Watch it multiple times. It will get easy.

for 1....then how to predict the movement of market on the basis of OI

Market does not fall or rise at once in one day. It falls or rises over a number of days and OI can clearly help in anticipating which way market "May" move. Prediction is a strong word and like Life and Future, Markets cannot be predicted.

YES, very well explained. At times the option chain is confusing and using COI is very important. Worth the time. It would be great if you can share more practical trades. Thank you. (Learning the use of IV) CHEERS for your spirit.

Hi Yogesh, I take the data and make my own charts. I don't copy paste charts from it. It's against their terms and conditions.

+TradeWithTrend graphical presentation of bloomberg is good to analyse

I do pull data through NSE to Excel. But I also have access to Bloomberg Professional Terminal. So I combine the both to see what I can infer from both.

+TradeWithTrendSIr what do you personally prefer? I feel You love graphs so BLOOMBERG?

NSE is the source. Always trust it. You can easily pull NsE data in excel sheet. Just google for open interest excel sheet and you will find many which pull data from NsE and display it in excel.

+TradeWithTrend Just I feel which website to use like Bloomberg or Nse. I feel NSE data is more reliable for OI, option chain. Your view in this regard? Thank you.

Any doubt, let me know.

Thanks so much Mohit In today's weekly video will try and put up a trade example.

I am finding words to thx you for explaining things in such elucidate fashion. Earlier I was often lost in option chain data and now I am confident I could make story out of it. Thanks once again to taken time out and sharing quality stuffs. God bless you.

Thanks so Much sanjeev vijay. Any doubt, let me know.

Gr8 sir... Thanks for detailed explanation!!

Current month is also fine. At the most, you can see for next months as well. Next month though has to be added when 7 days are left for expiry.

+TradeWithTrend Thanks sir.... 1 thng i felt was of doubt.... Tht Cumulative OI meant OI added for consecutive days of a particular expiry montb... Or did it mean OI added of all 3 expiry months

+Sukhwinder Pal Practice will make you perfect. Keep practicing. As far as free resource is concerned, I doubt if one exists. I'll still try and find out.

+TradeWithTrend..... was just thinking if there could be cumulative oi charts for stocks as well.... For nifty, bloomberg seems to be the only (free) source..... & for stocks, there seem to be none (free).... Though understanding & correlating for even nifty/banknifty is a big task for me yet :))

Thanks so Much Sukhwinder Pal. Any doubt, let me know.

Thanks so much Tessy. Yes this will be my focus.

Not exactly Tessy. Monthly and Cumulative had started reflecting this as well. Will try and cover this in today's video.

For cumulative, focus on Monthly data. For daily analysis, now you can refer to Weekly data in conjunction with monthly data.

Will be happy to see the examples of trade which you take.

Why I am asking this is because last week for this month cumulative was showing positive signs where as market was moving according to daily OI change. That's what I felt.

ST, thanks so much for teaching to view the option chain analysis from non conventional angle.

Most welcome Ras

Thanks for wonderful video, difficult to understand concepts at once it will take some time to follow

Thanks so much Praveen. Watch it multiple times. It gets easier with time.

Indeed you must have done lot of hard work in making this vdo but let me tell you thats really excellent piece of knowledge... thanks for sharing

Thanks Haresh. Any doubt, let me know.

Case Studies would be Awesome .....Lucky to find you in the start of my trading career before making any mistake and blowing up my account ....Many Thanks

Most welcome Rizwan Keep learning and keep improving.

Thank you so much sir for this amazing videos ...and enlightening us with the option chain analysis concept.Your videos have been like GOT episode for me .. early waiting for Thursday to see your videos.Thanks a ton sir.

Thanks so much Pawan

thanks you my friend for share this much needed information to analysis open interest chain. You are the best. :)

Thanks so Much Gnana Velu. Any doubt, let me know.

Worth watching it.....but have to watch 2-3 times....as advised..thank you

Thanks so much Ajay Singh

Sir cumulative OI chart means combined option data for all the expiry of Nifty ?

Of course you can. I'll surely reply back.

+TradeWithTrend Thanks for the reply sir .. can we share our weekly analysis with you about the concept you explained us through comment and you give your opinion if we are doing it correctly or not ?

Thanks so much pawan thareja It means Monthly Strike Prices OI cumulative data.

Just super. .......... no words. ......... will have to watch another 5 to 6 times. Few doubts, but let me first clear it myself.

Thanks so much Tessy

Awesome Video !!! Please confirm if Nifty IV is noting but INDIA VIX.

Zerodha has Sensibull. You'll get everything you want in Sensibull terminal

+TradeWithTrend Zerodha, do you have any idea where we get this NIFTY IV on Zerodha.

Google "Nifty Implied Volatility" chart. You will get many resources. Else some brokers give this info these days as well. Who is your broker?

+TradeWithTrend thanks,from where we get the Nifty IV

Vix is calculated with variables which include IV of atm and near atm nifty options.

Thanks Sanat. India VIX is different. Not same as Nifty IV.

For OI Cumulative chart you can either track it on excel through NSE. (Manual work)-your reply to Anil Kedikalam . CAN U PLEASE MAKE ONE VIDEO HOW TO DO IT????

I'll surely try to do this. Thanks

Thanks bro.. Keep uploading such videos..

Thanks Bhavin

wonderful analysis.....pl tell...1. this analysis is done on the end of day basis, means what the price is showing is reflected on the bars of OI and vice versa. how to use these bars/analysis in the prediction of movement of stock? 2. where to get the current chart of current OI and cumulative OI chart?...3.is cumulative OI chart is also prepared on daily basis as OI chart? thanks

Thanks so much BK Sharma 1. Yes it is done on EOD basis. Application of principles is same when it comes to Stocks. 2. For OI Cumulative chart you can either track it on excel through NSE. (Manual work) .Or there are now softwares like Sensibull web that give you this information. 3. Yes Cumulative is prepared on a daily basis.

Bro,can you analyse current expiry so that we can learn real time..thanks you for the video..

Thanks Kishore. I do it regularly on weekly videos.

Brother possible to comment on DOJI candles. Any sharings from your end will definitely add value to my views.

Thanks for the suggestion. Duly noted. Will try and cover this somewhere this month.

Very very helpful Thanks for series OI Q for premium decay Add with daily premium record in Excel for decay value calculate???

Thanks so Much Piyush Bhalara. Any doubt, let me know.

How do we work on Open Interest now as the Weekly option Chain have been started in Nifty. And how can we calculate the Cummulative Net OI as we have 4 expires every month ?

Weekly Option chain will be covered separately. But underlying concepts are same with some minor tweaks. For Calculation of Cumulative net OI for Monthly, avoid weekly data and just focus on Monthly expiry data.

premium analysis i get in free.which is not provided even in paid cources.thanks a lot sir.daily shared ur channel to friends and on social media plateform.

Thanks so Much Surender Jyani for your support. Any doubt, let me know.

Sir.. where do I get the cumulative open interest charts?.. also previous open interest history?

Most Welcome Anil

+TradeWithTrend thanks sir

Thanks so Much Anil Kedamangalam. For OI Cumulative chart you can either track it on excel through NSE. (Manual work) Or there are now softwares like Sensibull web that give you this information.

As usual u rocked it bro.....

I reside in UAE currently.

I have a small doubt completely irrelevant...... Where r u from...? (state)

Thanks so much Vineeth B

It's a great content brother, definitely one had to go thru 3 times minimum. 2 value additions my observation is volume candle it will surely change your perspective, normal candle may b short but once in volume it confirms it questions whether our bias is right? Second is pcr all TV channels raise this as high priority, but actually that's the least to b valued. Thanks for all this

Thanks so much chunduru surandranath Candle volume is an amazing way to visualize charts. PCR is very valuable at extremes but it is of limited value when in range. Open Interest Cumulative change is most underrated yet I feel it is one of the most important things to look at.

Thanks

Thanks so much Dipak Medhi

1. Do we have to see IV on intraday basis too? If so where can we watch it 2. How is general trend of IV from series start to end?

No you don't have to see it on Intraday basis. IV trend depends on underlying market conditions. IV prices in sentiment. So this varies in Bull & Bear market.

Very useful sir... Could you pls answer: " Cumulative OI Chart on say 10th november"?. It's Cumulative OI change data from Starting of Series to till 10th Nov or based on OI data available as on date?

Thanks so much vishu1r Yes, in this case its OI change of series till November 10th. But don't hesitate to experiment with various combinations. You need to take this and modify based on your own preference.

which website you refer for getting nifty and bank nifty iv, also now we have weekly and monthly pcr, which mainly suggest just opposite ratio, which one we should emphasis more

Lot of resources are available online for free. Just google "Nifty Implied Volatility" chart. Focus on Monthly PCR.

Thanks for the video, this is really very helpful and worthy. Would we be discussing future OI , days to come?

Nifty IV is calculated using front end month Options. This is the reason it reflects future volatility accurately.

+TradeWithTrend thanks,the IV you shown is of NIFTY Spot or ATM IV?

Thanks so much Srinivasulu M Futures & OI wont be covered immediately. Planning out some other topics for now.

Very helpful and useful video....

+TradeWithTrend thanks

+Basantkumar Tyagi You can if you want. But current month is also fine. At the most you can combine for current and next month.

+TradeWithTrend good morning sir, I have 1 query, is cummalative open interest includes all 3 months total open interest?

Most Welcome Basantkumar Tyagi. Any other doubt, let me know.

Sir hindi me video banaye to sab log apke video se bahut kus sikha sakate he please

Thanks for comment. Not a hindi channel. Cant explain well in Hindi

Very Knowledgeable Content, Keep Up the Good work sir. Can u please make a video on how you populate the OI Data and it's changes from NSE website to Excel and prepare these interactive graphs, I tried the same but couldn't do it properly.

Thanks so much Ashish Nyati Its quite cumbersome to do this. Luckily now users have the option to opt for softwares like Sensibull that do most of this job easily. Check it out. I'm old fashioned so I like the manual work as it makes me see data better.

Will make one practical video that we can understand iv increase or decrease for a perticular strike price.

Again, this part I have covered in end of video as to how you have to proceed with IV. Please watch till end.

Sir,I like your videos,in previous video you said if iv and oi increase that mean long position but where to compare if no historical data available for campare iv increase or decrease

Hi Kishor, Seems you have not finished the video. Please do so. I have come to this part towards the end.

In this Options Trading Strategies video, I have discussed about Option Chain Analysis where I show how Open Interest Analysis, Implied Volatility, Price Analysis and Volume Analysis come together.. Do watch this video multiple times to understand things better. If you like the content, kindly consider sharing it. Thanks. ST

Thank you so much Jayadevan Hope you have seen all the videos with respect to Option chain. https://www.youtube.com/tradewithtrend/videos

One of the best presentations I had ever heard. Very systematic and smooth flow.

Great info sir

Thanks so much Do watch other Options Trading video as well. Especially on Open Interest, IV and Price Analysis. https://www.youtube.com/playlist?list=PL9myHLrE5hrOuzyWOiD9TsjOqwKv1XdE8

Also do you mean with this link (https://www.nseindia.com/live_market/dynaContent/live_watch/option_chain/optionKeys.jsp?segmentLink=17&instrument=OPTIDX&symbol=NIFTY&date=28FEB2019)given for feb expiry data and it has all strike prices ,,combining all strike prices for today will give cumulative data .i am correct if not then just tell how .confused in this.

Yes this is NSE Option chain link. Now at end of day, you have to compile everyday's Option chain to get cumulative data.

please can you give weblink of nse website where cumulative open interest data we can see. I have tried search but did not get cumulative data.

NSE website does not give this info. You have to manually compile this information through NSE Website into Excel sheet. Else you can try Sensibull.

Thank you very much sir

Try Sensibull. You'll get this information here.

+TradeWithTrend Sir where to get cumulative open interest chart

Thanks so Much Kannapiran R.P. Any doubt, let me know. Hope you watched it till end.

20th Febuary: Nifty Price Action - Took support at 38.2 Fib level Broke 10700 level with good volume Strong demand candle at the end of the session No HH and HL structure IV and PCR analysis - PCR moved from 1 to 1.1 IV Decreasing with increase in Put(Put Writing) at 10400/10500/10600 a and decrease in call (not that significant) ... Current Expiry: Option Range - 10400-11,000 Put addition at 10,400/10600/10700 and call reduction seen. Cumulative 10500-11,000 (Bullish) and 11,000 strong resistance Conclusion - Looks like change in sentiment but still HH and HL structure formation pending and further reduction in Call Please share your view and correct me if i am wrong sir if i want to check the culmalative change in OI i would select the dates from 29th January to 20th Feb right as in sensibull?

Thanks for the suggestion Pawan. Will look into it.

TradeWithTrend okay sir will focus on price iv and OI for now .. :) and sir if you get time do make a video on how we can link FII DII data and option chain for a more extensive analysis :)

Thanks so much pawan thareja I would say there are too many variables you are looking at. Just look at OI, Price & IV (Trend) for Now. Then try and add day to day IV movements and PCR data point. Broadly you are on right track.

+prateek varshney You have to maintain cumulative data on your own in excel. Or you can try Sensibull Option Platform.

+TradeWithTrend please can you give weblink of nse website where cumulative open interest data we can see. I have tried search but did not get cumulative data.

Concepts for weekly remain the same. But application differs a little. Will cover Weekly Options soon. Yes this is very helpful for Bank Nifty. I maintain cumulative data in excel sheet. Data is taken from NSE website.

21st February: Nifty Price Action - Bullish closing above 200 Daily EMA. IV - Reduction in IV ATM Current Expiry-Range 10,700-11,000 Bullish but no significant call reduction apart from 10,700 CE Cumulative OI - Range 10,700-11,000 Bullish But 10,800 Strike price still has more of call than put and spot price at 10,791. Conclusion - Slightly Bullish and 10800 needs to be broken and price needs to sustain and 10,800 is also 100 DMA. Your View sir ? :) And thank you again for letting me post nifty analysis daily.

Dear Pawan, I write my observations daily on trade with trend dot com. Just thought it will be useful for you. Good job.

Range shifts happen in nifty from 10400 to 10700.

Thanks ravi Will check it.

+TradeWithTrend I know it and one of my cousine is using in excel sheet manually. But she don't know how to find IV from it. She tries to find the premium from black scholes model.

Do you know about Black Scholes or the Black model? This is Options Pricing model.

+TradeWithTrend can you tell me how to calculate. I take whole average of IV and just compare with previous day.

I prefer manual calculations as well. I dont like software's that much. Manual work gives you the feel of things. Call me Little bit old fashioned.

+TradeWithTrend afraid to open sensibull. Too much complicated buttons. Will have to learn it. I am doing one great calculation from nse. Will tell you later because now busy with ADX

Then try Sensibull.

+TradeWithTrend I am watching traders lounge only. It's showing previous day only.

Hi Tessy, Try Traders Lounge. Used to give live updates. No idea if they give it now. Else, Sensibull is one platform which gives this in real time. Had a look at their platform couple of weeks back. Its good. And today, its 9 Pm.

Sir.. in video .. all oi bar chart is made in live market oi or eod oi data??

All at EOD. I don't look at Intraday data that much.

Hi, From where I can get those charts you are showing in the session, mainly COI, IV ? thank you so much.

Thanks so much Samaresh Jana

Thanks a lot, those videos are really helpful.

Thanks Samaresh I compile this manually in excel. But you can get these at Sensibull as well.

Si vdo was awesome.. thank u.. will u plz help me out which soft ur using for this bar chart of OI bcoz it's easy to understand this.. on nse site when it comes to number chart it's very difficult to analyse..

Hi Ankush Lad, Thanks for your comment. Watch these remaining two videos as well. Option Chain Open Interest Analysis https://www.youtube.com/watch?v=eOBndPzxb2A Put Call Ratio, Open Interest, Implied Volatility https://www.youtube.com/watch?v=087Jxe9OxmU As far as software goes, I take this data in excel and I then compile it. You can also look at "Sensibull Options Platform". You will get this information there as well.

As from cumulative data from 29th Oct. - 20th no. IV + OI suggesting short selling in puts still after 20th nov. Price has fallen more than 200 point opposite to what cumulative data suggests. Although it moved higher after the fall but this fall would have hitted all SL if someone had shorted PUT.so how to manage entry & exit to avoid such scenarios Thank you

Can you post chart of the data. Will have a look and will then comment.

Will love to watch your case studies sir

Sure Sam. Thanks

Stocks requires a slightly different approach and interpretation. Will be planning out a video on this. Will cover it then.

hello Ravinder, could you explain your thought process on option chain as for stocks option chain changes very frequently I have tried for stocks but it confuses a lot

Hi.can we calculate implied volatility in excel. if yes then could you let me know how

For such detailed info, look into Sensibull. I think they have this feature. Not sure though. You'll have to check with their support.

but then do they provide IV's for a particular strike price on a daily basis. meaning if i want the IV of 10 days for a particular strike price

That's complicated to do so on Excel. Instead just aim for resources that provide you with IV values.

sir, 11000 CALL — 14th march weekly option having no time value now, infact its in 20+ points discounts now before 2 days to expiry. How to to understand this ? thanks

+TradeWithTrend sure, thanks for the reply.

Yes, this is what I feel. Give it some time. Then we'll see.

+TradeWithTrend so this is just anomalies n we need not give that much importance?? It will mature going forward

Give Nifty Options couple of more weeks. Then check. This was seen in Bank Nifty as well when weekly options was launched.

+TradeWithTrend BNF looks good

Is this visible in Bank Nifty as well or just Nifty?

+TradeWithTrend 11100 CE to discount by 15 points, 11200 has just Intrinsic value,no time value. Thanks

What about 11100 or 11200 Call?

Thanks for another excellent video. With every video some queries arise, can you kindly share where can one get details of the following: 1. NIFTY Charts are freely available at many locations, but none provide Volume Candlestick charts for Indices like NIFTY 2. You have shared the Implied Volatility Charts, but even these are not available. Where can I find it? 3. Lastly, for Cumulative Options OI, can we use the Current month end (For March Series 28th March Option Chain) Options Chain on NSEIndia.com Warm regards

Thank a lot. I use Zerodha platform for trading. I was not sure if I should subscribe to Sensibull. Thanks for your advise, I have subscribed to Sensibull Pro today.

Thanks Anoop 1) Go to pro.upstox.com. Its free to use and you will candle volume charts for Nifty Futures 2) There's a website, Traderslounge. You will get IV data live and for free. Else, try Sensibull platform. Excellent Options terminal they provide. 3) Yes you can use Current month end Option chain. Hope this helps

Sir, I completed it option trading strategies videos from part 1 to 4 and 20and 11 released recently. It is very much helpful and the way of explaining the concept was excellent. I feel U done the best sir. But from my side I stay in stock as to get passive source of income and can follow up market actions. Now I continue as investor. I am interested in options as to buy Nifty call/ put options during the first week of series depending on the prediction of Nifty direction. I feel entire subject in u r videos much helpful for intraday Nifty option traders. Is it possible to make any video in this view.if it has already done pls forward link. Thank you sir

+TradeWithTrend ok thank you sir

Okay got it. I haven't done a video yet. But I will do this in future. It is in the pipeline.

+TradeWithTrend yes sir

Thank you Hari Prasad I'm assuming you are mainly an Options buyer and are looking to buy into Options from a positional trading point of view. Is my understanding correct?

What is the relevance of volume in option chain???

Hi Jay, have you watched the video?

Hi Jay, Through volume candle I've shown how to use volume data as price and open interest evolve.

please make a video how to use iv for intraday trade

Yes i watched but i am asking in option chain there is a column of volume how we can relate this column with other data?

Where can I see cumulative OI chart ? where will get Implied Volatility value ?

You can get it at NSE. But you will have to manually update it. Else you can try Sensibull Options platform.

AWESOME. What do u mean for price analysis. After seeing OI chart you show to price movement. is it same or are you referring different

Hi Vikash, Price analysis is putting OI, Volume and Price together to draw valid conclusions. Same thing I have shown in the video.

Dear ST, Cannot thank you enough for all these videos

+TradeWithTrend Thanks for the advice. Sure, will do for others. Have a great week ahead :)

Dear Vetri, Good effort. Try and include all 8 rules. One sheet for Main 4 rules and one for 4 supplementary rules.

sir the volume that you are refering to, is it the contracts???.I may sound foolish but pls pardon me for that

Hi Laxmikant, Which time stamp are you referring to? Will watch and then let you know.

sir in the video you said that For prices to move lower, volume should increase , OI of calls should increase and OI of puts should decrease. so similarly can we say that for prices to move higher , volume should increase, Oi of calls should decrease and OI od puts should increase ??

Most welcome.

once again thanks a ton for the quick reply

Hi Laxmikant, Broadly your understanding of the same is correct. At times one of the components may be missing but this is how it will play out 8 out of 10 times. Recent move has happened based on this.

sir could you tell me how to calaculate 3 days Cumulative data for say 11300 ce ??

sorry calculate

sir its okay i got my answer

Most welcome

thank you so much.really appreciate it sir

Start with series first day Open interest value and then add subsequent days change in open interest figures.

no sir .sir could you tell me how to calaculate 3 days Cumulative data for say 11300 ce ??

Hope you understood. Just saw your previous messages.

First day and then keep adding or subtracting OI Change of subsequent days. You can also get this information readily available on Sensibull

sir just one clarification.I will start with the first day of the series. say if it was mar expiry.so 1st day for march series was 1st Mar. so for 5th mar Cumulative OI i add 1st march OI and 5th march change in OI?.Then for 6th march i add 1st march OI and 6th mar change in OI ??.I hope i am correct

so to the 1st march OI i add subsequent days Change in OI ???

sir, how to find out trading range for a particular day? kindly explain

You can look at historical ATR range to project the same. It's a good indicator to approximate range for the day.

+TradeWithTrend yes.

Can you elaborate more? Are you looking for range on day to day basis?

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