From 9:15Am continues falling worth of 21800PE and Oi growing 3M – 8M,however after 2:30PM quick vendor there place, and OI lower 8M – 5M, however similar time how worth additionally fall.
Principally, I understanding if shortcovering happning, worth ought to go up,I’m Begginer can anyone please information me.
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Within the case of 21800 PE, as nifty was constantly going up and as OI consists of each consumers and sellers:
A doable clarification of OI taking place together with premium will be as a consequence of put consumers exiting their positions and choice sellers who offered at highs protecting their shorts to shift to larger ranges (Probably 21900) after 2.30 p.m
One has to additionally see the general addition and unwinding of each calls and places all through the day at a number of strikes and if we see the general information, we are able to see that the general OI decreased within the rapid strike costs on the decision facet, there was addition of OI at larger strikes on the put facet (extra put OI addition at 21900 PE than 21800 PE)
@Jason_Castelino and others who monitor OI , what are your ideas on the query by @Sameer_Mathan?
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I belive when each purchaser and vendor, create new place OI get enhance, and similar when purchaser and vendor exit there place OI get lower,
and worth solely change base on market order positioned, appropriate?
if this case, after 2:30 oi begin reducing, means purchaser exit there place and vendor exit there place.and worth change primarily based on market order.
however query is from day begin vendor was dominated worth, which means sellers have hloding there place from morning,and purchaser exited there place on SL worth, and new purchaser purchase, current purchaser’s contract.
after 2:30 vendor’s exit there place. which means vendor shedding there domination, if vendor cease domination, and exit holding place, it’s contemplate they shopping for it again at market worth(principally), worth must be go upward, or keep sideways.
let me know, if i’m improper, @Meher_Smaran @Jason_Castelino
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Sameer_Mathan:
after 2:30 vendor’s exit there place. which means vendor shedding there domination, if vendor cease domination, and exit holding place, it’s contemplate they shopping for it again at market worth(principally), worth must be go upward, or keep sideways.
not essentially, if there’s a enormous spike in purchase orders and there’s panic to get on the market will likely be quick protecting. On this situation, the Choice author is making an attempt to exit uncontrollably in scarce provide. So worth will rise and most probably OI will drop.
But when within the case you talked about, the underlying is generally rising, then its extra like unwinding(revenue reserving) the place the Choice writers need to shut place by absorbing the Sellers in a staggered method. So Patrons will preserve reducing shopping for worth(whereas closing / lowering OI). Additionally, the PE consumers who earlier added to the purchase facet and helped OI go up are getting out. (so now lengthy consumers are panic promoting)So OI and worth is each taking place.
Often, choice author will purchase again thereby lowering OI on this case if they’re rolling up like making an attempt to promote larger strike worth or anticipating volatility later and reserving earnings.
As written by Meher, its clearer if you take a look at your entire choice chain as a substitute of particular strike.
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Many of the issues are already coated by Meher and Chirag.I imagine you haven’t any doubt in OI growing all through the day and put shedding premium as a result of put sellers had been able to promote it at any worth.About premium falling together with OI. Now this depends upon who’s folding first. From the info you might have shared clearly put consumers who had purchased intra day places, could also be anticipating a fall like yesterday, needed to shut it on the finish of the day. And so they had been closing at any given worth. And sellers had been pleased to guide good revenue.So it was extra of revenue reserving by put sellers.There is no such thing as a motive for brief protecting in 21800pe as nifty was going larger. Why would an choice vendor panic and canopy their place.
Bro should you critical abt buying and selling steer clear of OI and random YouTube crap which individuals have used to promote there programs on-line OI information of Indian indexes is a joke created to idiot retailers
Sleepy_Weasel:
OI information of Indian indexes is a joke created to idiot retailers
Let me escalate this additional to offend individuals. Don’t you assume TA as a complete is a joke?