Why did I say so?
Let's have a look, how smart men set the move and we dragged along.
A learning thread of price action and its option chain set up.
Let's have a look, how smart men set the move and we dragged along.
A learning thread of price action and its option chain set up.
Stage 1.
Stock come into radar on 17 Apr 20. with its increase in traded value, traded volume and above average delivery % in last one week. Also, noticed the ratio of number of trade and total traded quantity is high..... Seems big players are interested in this.
Stock come into radar on 17 Apr 20. with its increase in traded value, traded volume and above average delivery % in last one week. Also, noticed the ratio of number of trade and total traded quantity is high..... Seems big players are interested in this.
With this set basic set up further peep into the charts and option chain gave some important observations:
1. Stock is in consolidation since last expiry.
2. When CMP was around 1300. Unusual activity seen on far OTM PE.
3. On 1160 PE highest unwinding is observed.... GADBAD
1. Stock is in consolidation since last expiry.
2. When CMP was around 1300. Unusual activity seen on far OTM PE.
3. On 1160 PE highest unwinding is observed.... GADBAD
Why would someone unwinding in huge quantity at 1160 PE.....
What's the intention...
How will it effect?
Will stock go to 1160?
All question comes to my mind.
What's the intention...
How will it effect?
Will stock go to 1160?
All question comes to my mind.
Stage 2. Apr 21.
Stock decline smoothly in next two days. On 21 Apr 20 stock closed at 1200 with low at 1158. On this day volume also seen above average.
*** First target done.
There was volume & delivery% increase however, no corresponding long bearish candle.
Stock decline smoothly in next two days. On 21 Apr 20 stock closed at 1200 with low at 1158. On this day volume also seen above average.
*** First target done.
There was volume & delivery% increase however, no corresponding long bearish candle.
Here again option chain shown something unusual on far OTM strike 1300 CE.... GADBAD
Now I understood the game. Stock added to focus list.
Now I understood the game. Stock added to focus list.
My understanding prior commencement of the trading day.
a. Stock is in consolidation with big player in the play.
b. 1160 to 1300 is their accumulation zone.
c. Candle size is not proportionate with the volume, someone buying at this level.
d. Stock may go till 1300.
a. Stock is in consolidation with big player in the play.
b. 1160 to 1300 is their accumulation zone.
c. Candle size is not proportionate with the volume, someone buying at this level.
d. Stock may go till 1300.
Further, next three days stock risen from 1158.
Today stock has reached to its designated level ( as per my understanding) of 1300..... Second target done,
Stock made high of 1311 prior closing at 1238.
Today stock has reached to its designated level ( as per my understanding) of 1300..... Second target done,
Stock made high of 1311 prior closing at 1238.
This was my data reading/ understanding.
I have no answer for questions like......
It can be straddle/strangle/iron condor/ hedging.
Will it happen all the time?
On 17 at 1160 strike its seen as premium also decreasing, so no put buying. How to interpret, is this buy/ sell.
I have no answer for questions like......
It can be straddle/strangle/iron condor/ hedging.
Will it happen all the time?
On 17 at 1160 strike its seen as premium also decreasing, so no put buying. How to interpret, is this buy/ sell.
One interesting Point for all of us.
Again there is maximum unwinding at 1160 strike 😉
You all are intelligent to decide the next trade.
Please #RT if you learn anything.
Again there is maximum unwinding at 1160 strike 😉
You all are intelligent to decide the next trade.
Please #RT if you learn anything.
