A tool every Option trader should use : @iChartsIndia ๐งต
@iChartsIndia Let's decode why you should use it too and how I help myself.
I use these four features(primarily)
โ๏ธ Option Chain
โ๏ธ Total PE-CE Data
โ๏ธ Option OI breakup
โ๏ธ Strangle Charts(Combined Premium)
I use these four features(primarily)
โ๏ธ Option Chain
โ๏ธ Total PE-CE Data
โ๏ธ Option OI breakup
โ๏ธ Strangle Charts(Combined Premium)
@iChartsIndia 1/ Option Chain
Option Chain data is reliable when the trading week begins(i.e Friday). Even, Monday's data is not very accurate as traders are still building their positions.
Option Chain data is reliable when the trading week begins(i.e Friday). Even, Monday's data is not very accurate as traders are still building their positions.
@iChartsIndia I start giving emphasis to the build-up from Tuesday.
Looking at this week's expiry data(i.e 23rd June 2022),
We can observe
Put writing at 15300, Call writing at 16000
Looking at this week's expiry data(i.e 23rd June 2022),
We can observe
Put writing at 15300, Call writing at 16000
@iChartsIndia 15500 call unwinding has been massive; which is visible by the move on Tuesday(i.e 21st June 2022)
Puts are still more pricey than calls, implying traders have been factoring a down move more than an up-move.
Puts are still more pricey than calls, implying traders have been factoring a down move more than an up-move.
@iChartsIndia 2/ Total PE-CE Data
How I interpret this data and use it to my benefit.
The difference indicates whether there is more put writing or more call writing.
If (PE writing > CE writing)
{
Column Color : Green
}
Else
{
Column Color : Red
}
How I interpret this data and use it to my benefit.
The difference indicates whether there is more put writing or more call writing.
If (PE writing > CE writing)
{
Column Color : Green
}
Else
{
Column Color : Red
}
@iChartsIndia Future Price column color indicates whether the market is above VWAP/below VWAP.
@iChartsIndia If the market is trading above VWAP, color is green.
And if the market trades below VWAP, color is pink.
And if the market trades below VWAP, color is pink.
@iChartsIndia Inference Signals:
If VWAP = Green, Diff = Red : Conflicting Signal(Market can remain rangebound)
If VWAP = Green, Diff = Green : Market is trending up and we can look for long trades
If VWAP = Pink, Diff = Green : Conflicting Signal(Market can remain rangebound)
If VWAP = Green, Diff = Red : Conflicting Signal(Market can remain rangebound)
If VWAP = Green, Diff = Green : Market is trending up and we can look for long trades
If VWAP = Pink, Diff = Green : Conflicting Signal(Market can remain rangebound)
@iChartsIndia If VWAP = Pink, Diff = Red : Market is trending down and we can look for short trades
@iChartsIndia Total PE-CE Data just helps in finding the direction for the day.
@iChartsIndia 3/ Option OI Breakup
@iChartsIndia This helps in finding out the strike which is experiencing IV spike and one which is continuously making new lows.
If you are trading non-directionally, only way to make money is if you are able to either avoid spikes/ get out with a minor injury.
If you are trading non-directionally, only way to make money is if you are able to either avoid spikes/ get out with a minor injury.
@iChartsIndia Non-Directional Trader's Nightmare
Low premiums + Market trending down(accelerated move) + Spike in put premiums + Calls not decaying
Low premiums + Market trending down(accelerated move) + Spike in put premiums + Calls not decaying
@iChartsIndia OI breakup has saved me many a times by giving timely exits.
@iChartsIndia 4/ Strangle Charts
Combined premium charts are of great use by just plotting VWAP and 20 EMA.
If you trade non-directionally by shorting options, the chart should be trending down.
Combined premium charts are of great use by just plotting VWAP and 20 EMA.
If you trade non-directionally by shorting options, the chart should be trending down.
@iChartsIndia There are many other amazing features. Will look to cover them sometime later.
Am still exploring the tool.
Thought of sharing it for the benefit of everyone.
Am still exploring the tool.
Thought of sharing it for the benefit of everyone.
@iChartsIndia @AdityaTodmal For more such threads in future, follow me at @shivang_ran.
Retweet the first tweet to spread it across.
Feedback appreciated.
Happy Trading.
Until next time, bye ๐
Retweet the first tweet to spread it across.
Feedback appreciated.
Happy Trading.
Until next time, bye ๐
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