Highest Open Interest

Date: 13-July-2017

This bull market is not showing any decline at all. It is getting frustrating now. I think GST has a big role to play.

Current position Nifty as on 13-07-2017 at 11.22 am:

Last six months graph of Nifty:

India VIX also hovering from 10-12.

So what are option traders trading?

The answer lies in trading volume or most active options open interest. This information can be obtained from the NSE site here.

According to today’s data as of 11 am:

Highest open interest at Call Options (most active option):

OPTIDX NIFTY 27JUL2017 CE 10000: 41,71,575

Highest open interest at Put Options (most active option):

OPTIDX NIFTY 27JUL2017 PE 9600: 68,13,525

Highest Open Interest means both option buyers and sellers are doing the most trading in these 2 strikes.

What do you infer with the Highest Open Interest?

You see open interest only tells where most people are trading. But for every buyer there is a seller.

So here the most speculative trading is going on. 50% of them are buyers and 50% of them are sellers.

Now which side will you take? That is the problem with open interest.

Lot of traders see daily open interest and trade there. Obviously 50% become buyers rest become sellers,.

50% of them make a profit, 50% make a loss.

Here is where it can create a confusion. You can’t flip a coin and become seller or buyer right?

Open interest will give you data of where most traders are trading but it never reveals what is going on in their minds. So there is not much to do with open interest. Just trade conservatively without being biased for any direction and keep making profits consistently. Though conservative trades make small profits – but a profit is a profit not a loss. Even a small profit is better than a small loss for a big gain right?

You can read about the conservative option course here.

COPYRIGHT INFRINGEMENT: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However, every trade depends on the trader and his level of risk-taking capability, knowledge and experience. Moreover, stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.

DISCLAIMER: I am NOT an Investment Adviser (IA). I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.

Disclaimer | Privacy Policy | Terms and Conditions | Refund Policy | About Me | Conservative Option Course | 200+ Testimonials - What Traders Say About This Course | Contact Me

My student gets the Winner's Certificate of Zerodha 60-day Challenge - Click here and Open Stock Buy and Sell Free Account with Them Today!!!