December 1, 2018

NIFTY options open interest analysis (updates)

- highest OI in all options is at 10000 PE, 10200 PE, and then 10500 PE
- my guess is 10500 PE will eventually have highest OI
- surprised to see large OI at 11000 PE... this is rare
- highest OI in calls is at 11000 CE... this is not surprising

- overall bias is bullish/ limited downsides

- this is the view of option writers and can change anytime
- note that option writers can be wrong and still make money

- I am observing many retail traders are doing option writing past few months and getting slaughtered in the process
- option writing is not for everyone... learn the greeks first, risk management etc etc



Note:
- earlier chart had scaling limitations which has now been increased
- charts/ data is sourced from http://opstra.definedge.com

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