Zee limited – A case study in Open interest

Zee Limited has become an interesting study for derivatives & equity market data.Here’s the data presented to you.

• Highest Open Interest in it’s history ~7.65 crore shares. 1st feb 2021 OI was ~ 2.5 crore shares. So the jump is huge and it’s subtle, built slowly and steadily rather than a sudden one.

• Single strike Open interest is higher than usual. Zeel 200 call may expiry has approximately 1 crore shares, generally it’s around 35-40 lacs max.
• It is among the top 20 strikes of highest open interest in stock options across market.(We don’t generally see zeel options in top 20 strikes)

• Zee Limited has total 96.05 crore equity shares.Promoter holds less than 4%.

• Invesco holds nearly 18% through it’s global china fund and developing market fund.
• MSCI India Index deleted Zee limited form it’s index. It’s action(selling of shares) will happen on 27th may, expiry day.

Now have a look at the recent divergence of ZEEL in it’s main index where ZEEL is the biggest weightage, CNX MEDIA.

I am not a fundamental expert but respectable names are there in shareholding & it’s board.

The conclusion for me is –

• The data is interesting but the chart’s not yet.
• MSCI exit action date (27th may) is important.
• Keep a watch on 200 call price and Open interest.
• No strong directional views.

 

Happy trading.