Call Writers taken one step forward

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Call Writers taken one step forward

11 February 2010 569 views 4 Comments

High Open Interest Seen in 4900 CE and 5000 CE which indicates strong call writing. As of now call writiers are confident of the resistance level 4900.

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Open Interest Sentiment – 6,Feb2010

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4 Comments »

JITIN said:

HELLO MR. RAJANDRAN,

I have few querries to ask.:-

1. IF an open interest at particular strike price is building up or its high how sure are we / or how to gauge that this strike price option is being written only and not simply buying is happening .

2. how true is implied volatility/ can we solely rely on IV to measure the stock movement. from where we get all the ingredients required to calculate implied volatility like dividend, interest rate etc..

3. I calculated nifty last two years call option and put option premiums . but more often i have seen the option premium for put option has been high than it should be in both the scenarios i.e. before market was to fall and when market was to rise . but in call options most of the time the premium was less than it should be.

i was just checking if option premium could guide us before hand the direction of the market movement.
plz throw some light on this option premiums can be taken as a leading indicator .

4. presently tatasteel option premium is trading much lower than it should be at this time , and i mean for both call as well as put option. But , reliance both the options premiums are trading much higher than they should be .

I know a lot of questions i have asked , but please take out some precious time of yours to give the answers . i will be thankful .

thanks & regards,

JITIN.

# 11 February 2010 at 12:44 pm

JITIN said:

HI AGAIN ,

FROM WHERE CAN I TRACK REAL TIME DOLLAR INDEX & GOLD .

THX.
JITIN
09899418696.

# 11 February 2010 at 4:39 pm

Sreenivasulu Bellamkonda said:

Hi!
I have also same doubts as that of JITIN since a long time. Technically how can we resolve it?

# 13 February 2010 at 7:22 pm

Call writers Conquered 4800 Strike Price | Marketcalls said:

[...] is a suspected 5/13 Weekly EMA crossover and then later they take one step forward and shorted 4900CE on February 11 and now i.e today(15th Feb 2010) they started writing 4800CE too. It seems call writers would [...]

# 15 February 2010 at 4:12 pm