Thread by @BasicLearner

#Option Chain
#Option trading

# ATM CE position built up... Strong resistance
# ATM PE position built up... Strong support.
# Far OTM position built up on call side...Strong bullish
# Far OTM CE position built up... Strong bearish....

I couldn't find it so simple.

Mostly, what I learned is this presumption is a very easy way to misguide the masses by using the option chain.

On many occasions I have taken absolutely opposite stand and got good hit ratio.

Apart from the position built up, if one pays attention to futures position, traded value in cash and delivery% along with the traded value at the each strike price of respective option, this may give much stronger insight of bias, since, bigger money at stake.

On occasion, there's quantity of change in open interest and total open interest is same. So, in this situation my understanding says the individual has a strong conviction that the same strike may be ITM within few days. In this regard one can check my tweet of 13 Jul 20

About #Reliance inclusion in the EOD study list and the position built up in option 2000 CE on 13 Jul 20 also the value at stake (422948.7 Lakhs) Further, #RIL movement.

Now, things mentioned here are no where rules, since, market is so dynamic and one has to adopt the change.

With my small write up I will conclude the thread here. One can spend some time on below mentioned scrip for easy understanding. These are no way recommendations for buy or sell. Please do your do diligence prior putting your hard earned money.

Further, In the last week of expiry, large no of position get closed/ shifter to next series, therefore, there are higher chances of analysis on the basis of option chain can go completely wrong. Be cautious. Be profitable.

Option chain to study prior expiry.

#MOTHERSUMI
#BATAINDIA
#EXIDEIMDIA
#DABUR
#NESTLE
#NAUKARI

Study/ Share/Retweet , if it helps you in learning.

Far OTM PE built up... Typo in last bullet.