What is Option Chain? | L-4 Options Trading Course | Trading with Purab
Published: 2024-09-15
Status:
Available
|
Analyzed
Published: 2024-09-15
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
A PCR ratio above 1.3 indicates an overly bullish market, suggesting a potential for reversal and a move downwards to a more normal level.
"If the PCR ratio is above 1.3, it means that the market has become too bullish. When the market is too bullish, it is not necessary that it will come down but when it is too bullish, there are chances that the market will take a reversal and come down to a normal level."
Pending
A PCR ratio below 0.7 indicates an overly bearish market, suggesting a potential for the market to reverse and move upwards.
"And if the PCR is below 0.7, it means that the market has fallen too much and become too bearish. Then it is possible that the market will come back up."
Pending
Reliance Industries has potential strong support levels at 50,500 and 46,000, with a significant number of option sellers betting on the market staying above these levels.
"The market will be above 500. This will be a very strong support area. Along with that, there will be another strong support area. That is 46,000. Here you can see the quantity of open interest. At a strike price of 51, 000. Where you can see a little bit in the opposite. 17, 000. But that is not very big compared to 46, 000. So 46, 000 options are for the seller. The market will be above this."
Pending
Reliance Industries has a potential key resistance level at 52,500, with a large number of option sellers expecting the market to stay below this price.
"And 50, 000 option sellers think that the market has to be below this. So 52, 500 is your potential resistance. It becomes an important key resistance level."
Pending
26,000 is identified as a potential resistance level for Nifty, based on a large number of option sellers believing the market will not move above this price.
"They believe that 26, 000, which is the imaginary line, Banalo. Are we 25,000 RU or 26,000 rupe? Open interest, open contracts, option seller Option option. The option buyer has to tell what is going to happen in the market. The option buyer has to tell that the market will go up by Rs. 25, 000. The more it goes up, the more profit it will get. But the option seller will say that the market does not have to go above Rs. 26, 000."
Pending
A significant open interest on the call side suggests the market will fall, while a significant open interest on the put side suggests the market will rise. The change in OI can indicate increased confidence from option sellers.
"And if on the call side, which is the call from the perspective of the option seller, then whenever it is more there, it means the market will fall down from there. I hope you understood. It wouldn't have been too complicated. Now, the change in OI can be either plus or minus. Plus means the number of orders has increased. Sorry, the question is, when can contracts and option sellers sign when they are sure of their decision or when they gain more confidence. So whenever there is a new number at a specific strike price, for example, 37, 800, the number will increase by 20, 000."
Pending
Analysis of Open Interest suggests potential resistance at 25,200 and strong support at 24,700 and 24,800, based on the beliefs of option sellers.
"This means that 38,000 option sellers think that the market will stay lower than this, it means it could be right. ... 47,000 option sellers believe that the market will stay above 24,800 or above 24,800. ... 33,800 put option. The seller thinks that the market will stay above 24,700. This is a support level of 24,700. ... 33,000. This means that this can become a strong support level for us."
Pending
A strong support level for Nifty is indicated where there is a high open interest on the put side, suggesting option sellers believe the market will stay above that level.
"This means that this can become a strong support level for us. Because most of the option sellers think that the market will take support from this or will stay above this. If there is more open interest in the put side, the market will go above that."
Pending
Analysis of Open Interest indicates potential resistance at 52,500 and strong support around 50,000 and 46,000 for Reliance.
"And 50,000 option sellers think that the market has to be below this. So 52,500 is your potential resistance. ... 46,000. Here you can see the quantity of open interest. At a strike price of 51,000. ... 50,000 option seller is the one, and the analysis of 46,000 option seller is correct. ... These people, and those who don't know about it, they make a lot of mistakes and trade against the options seller."
Pending
A Put Call Ratio (PCR) below 1 (specifically 0.88 in an example) suggests a bearish market outlook. A PCR below 0.7 indicates an oversold condition and potential for a market reversal upwards.
"So if it is below 1, which is 0.88, what does it mean? ... 0.88 means it is below 1, which means the market can remain bearish. ... And if the PCR is below 0.7, it means that the market has fallen too much and become too bearish Then it is possible that the market will come back up"
Pending