SRTRANSFIN – Follow the clues.

Dharam Chand Sethia Equity, Options Leave a Comment

Sometimes you get lucky. When you are long in the highest gainer for the day, it feels good.

Were there clues other than really good chart setup.

To my mind – yes.

What were they? Have a look on 3 following images from 19th, 20th, 21st oct to find the subtle difference in the positioning of market.

21st october changes in Open interest and IVs in the Option chain.

 

20th october changes in Open interest and IVs in the Option chain.

 

19th october changes in Open interest and IVs in the Option chain.

Few thing to notice in 21st october position-

  1. Rising IV.
  2. Rise in OI in odd strike (720) almost equal to the OI of last few day’s regular strike(700).
  3. Rise in IV happening near end of series, If Price action is favourable, the move should be faster.

It’s not a scene that happens often, so one has to use his/her gut feel & technical analysis along with above.But sometimes you do get lucky in following the clues :).

 

Hope you find this useful. Please share your views in the comment section. It will also help me improve my analysis.

Thanks for spending your valuable time here.

Disclaimer – I am not a sebi registered Advisor/Analyst. Kindly consult your financial advisor before acting on this information.Consider this an educational post.

 

Happy Trading & Investing.

Share this Post

Leave a Reply

Your email address will not be published.