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Optionchain

Eicher Motors Double BottomEicher motors has fallen from its high by about 20% and we may be looking at a double bottom reversal as it rests on the 200EMA. According to option chain data, 3100 is a strong support. According to Multi strike OI, calls graph is falling which shows a bullish Singal and puts graph is rising which shows an even more bullish signal. Targets of T1 and T2 with stop loss below 3050, safer traders can wait for the break of the trendline but it may mess up the entry price Keep It Simple
NSE:EICHERMOT
by Krish_Kohal
Call writers vs Put writers : who is powerful ?The option market is always dominated by the writers, either the call writers or the put writers. Understanding Writing an Option Traders write an option by creating a new option contract that sells someone the right to buy or sell a stock at a specific price (strike price) on a specific date (expiration date). In other words, the writer of the option can be forced to buy or sell a stock at the strike price. However, for that risk, the option writer receives a premium that the buyer of the option pays. The premium received when writing an option depends upon several factors, including the current price of the stock, when the option expires, and other factors such as the underlying asset’s volatility. Benefits of Writing an Option 1.Some of the main benefits of writing an option include: 2.Premium received immediately: Options writers receive a premium as soon as they sell an option contract. 3.Options decline in value due to time decay, which reduces the option writer's risk and liability. Because the writer sold the option for a higher price and has already received a premium, they can buy it back for a lower price. Call Writers vs Put Writers : who is powerful ? During Intraday, we see the option chain and convert it's data into graph/bar charts, so that we can interpreted the data easily. How to interpreted the graph ? If the green line is above the red line: it means Call writers are greater than Put writers. Bearish Market If the red line is above the green line: it means Put writers are greater than Call writers .Bullish Market
NSE:NIFTY
by DevabratAcharya
6
Dark cloud cover confirmation: shooting star, what's next?Last week, we saw a huge sell-off, that resulted in the formation of a shooting star. Such a pattern has major implications if it is seen at top of the trend. It depicts sentiment reversal. Last, to last week we saw a dark cloud formation, now the following candle is a shooting star. It clearly shows the overall sentiment. Same thing you would observe if you see, the option chain. Very few positions are carried out for Monday Calls are being added at an important price level. 17500, 17800, 18000 level Whereas in the case of puts very few contracts are being added at 17200 and 17000 level This shows call sellers are in control. Expecting some short-term reversal from the 17100 to 17200 level, considering support, resistance and Bollinger band.
NSE:NIFTY1!
by OK_Rane