Chalo today analyse how the OC was behaving during the live market and then how the market reacted . Will try to post my heart and brain out, the way I think and the way I sell Deep ITM option. If you know me perosnally , then u know very well that how Deep ITM i can go. Lets go
Bank Nifty 15m chart
Below is the snap of 36500 option OI moves till 10.45 AM. You can see your self the writing in 36500PE oi started from 3.58 lk in morning and went till 13.39 by 10.45 AM. At the same time the writing in 36000CE which started at 13.45 in morning stayed at 13.27 by 10.40 AM.
36500CE was OTM while 36500PE was ITM and hence the writing in PE OI holds significance. Till this PE is getting written, no chance of reversal in BNF. Now lets see what happened after 10.45 AM
The 36500PE made a high of 14.33 lk and then started falling . Also at the same time 36500CE which was holding OI at 13.30 lk started increasing rapidly to 20 lk . If you had observed these both OI, then you should have booked your longs the moment 36500CE reached day high
which was also stamped with fall in 36500PE OI. Below in the picture in 30M TF. It makes things more clear but its not possible to trade on 30M TF, so we start with 5M TF. Now let me show you what was happening in 36000 Strike OI
Serious Call writing started in ITM CE (36000) from 11.30PM onwards while OTM PE of 36000 was holding forth on OI front. There was no aggression for writing these OTM strikes.
This is in itself a alarm bell that "KUCH TOH GADBAD HAI"
This is in itself a alarm bell that "KUCH TOH GADBAD HAI"
Always remember no data analysis or trading method is 100% successful, but if we can analyse the things properly, then it will decrease our loss making trades and helps us in making more profit.
Loading suggestions...