I had posted few weeks back that the "MATRIX OF OPEN INTEREST IS CHANGING".
Got few questions and many abuses. Part of the thankless job that we do to provide quality FREE EDUCATION on twitter. Yes, at some point, we also charge to people for explaining things in more detail.
Got few questions and many abuses. Part of the thankless job that we do to provide quality FREE EDUCATION on twitter. Yes, at some point, we also charge to people for explaining things in more detail.
Today will show you (can say will prove you) that how the THEORY OF OPEN INTEREST IS CHANGING FROM SHORT OPTION TO LONG OPTION.
Please note, its a theory that we have to see Open Interest from SELLER PERSPECTIVE and I also believe that but oflate there are too many dents in
Please note, its a theory that we have to see Open Interest from SELLER PERSPECTIVE and I also believe that but oflate there are too many dents in
this theory. This lead me to do serious data crunching in last six months on Bhav Copy and Option data of Bank Nifty and its stocks. Will post a small snap shot of how the things are evolving.
We all know that Option market is controlled by seller as they are the person with big pocket. Also people with big money find it easy to make money in option selling because of time and etc etc. But now based on few own research I can say that
PEOPLE WITH BIG POCKETS ARE BUYING OPTION IN BIG QNTY and majority of Selling position is created by retail(in search of guaranteed money). Lets see few examples to prove this claim.
We will do stock Option Chain analysis of majority of Banks
We will do stock Option Chain analysis of majority of Banks
On 30/8/22, BNF moved 1200 points on upside and lets see how the major banks were placed on 28/8 and 29/8. Please compare the marker area of two days.
HDFC BANK
HDFC BANK
ICICI BANK
KOTAK BANK
AXIS BANK
SBIN
You can see in above pics all the banks shown Increase in CE OI on 29/8 and then big move came on 30/8. You will say this may be one time phenomenon, lets see what happened on 7/9 and 8/9 when BNF moved 800 points
HDFCBANK
ICICI BANK
KOTAK BANK
AXIS BANK
SBIN
Here also you see, while on 7/9/22, all Banks shown writing on CE side and then we get big move on 8/9/22.
So what does it means?? Either the Big player has suddenly become idiot and getting trapped too often. Atleast I am not in the camp to believe that they are becoming so
So what does it means?? Either the Big player has suddenly become idiot and getting trapped too often. Atleast I am not in the camp to believe that they are becoming so
dumb that they are getting trapped almost 70% of time in last 6 months. I have data to prove that, but then that will take days to explain here.
Actually suddenly retail player like us has realised that Option Selling is easy money and hence started selling Index Options and
Actually suddenly retail player like us has realised that Option Selling is easy money and hence started selling Index Options and
Liquid Stock Options (you can see the trap in ITC CE in last six months). Market is designed to loot the consensus trade. And I think selling OTM option is becoming too fashionable now. And hence somewhere down the line these trap are becoming too frequent. Even in BNF you will
see that 40lk OI trap is becoming common nowadays . while few months backs , if an OI has reached 40lk, then chances of that strike getting trapped was less than 15%. But now that has gone down to 50%. Even OI of 50-60lk is not safe.
The purpose of this tweet was to share my small knowledge based on some data research of last six months. So start looking OI chain from open mind now and that always looks that as SELLER OI. There may be smart buyer hiding somewhere as Long Option.
I know few idiots will take screenshot of this tweet and make a fun of it. But fact remains they are your biggest enemy and choice is your, whether you laugh at the banks or banks laugh at you.
You can connect with me on my free telegram channel
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