Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

Highest Open Interest in Stock Options Visualized

2 min read

Highest Open Interest among option strike price is the widely used terminology to identify where most of the liquidity flow happens i.e where more of the writers and buyers willing to hang around. Is there we can get any meaningful & real intelligence from such information that is the curiosity it makes me to collect historical highest open interest for all the stock futures price using python (my team had built me a simple app which does that little work) and used plot.ly for visualization.

Here are the Real Findings from the overall data collected

1)Call Writers Intelligence is there in selected scrips only during selected phases. Cannot be used as a potential resistance all the time.

2)In a trending markets call writers where they build highest open interest tends to fail and has to be in a continuous firefighting situation (i.e continuous re-adjustment is required. Only an active trader can do that). At times these call writers tend to get trapped in the trends. Never ever think of doing call writing as part-time business especially if you are new to the world of options writing.

3)Most of the Stocks have more of call writing happening compared to put writing – possibly Put writers find less liquidity from put buyers or naked put writing is one of the worst strategies in case of any deep black swan events and writers tend to avoid it as many active option writers will be aware of this taleb’s thing.

4)Put writing is primarily seen in popular stocks like SBIN, AXISBANK post their earning results announcements.

5)And Last but not least – approximately 90% of call buying market share in stock options are owned by Retail clients at any given month.

Retail Clients Options Data – Green line indicates call buying open interest over a period of time from retail clients.

Here are some of the stock charts visualization for your understanding where the blue line is the stock price, Green Dots are the strike price where highest calls open interest got built and red dots are the strike price where highest put open interest got built. More consecutive dots you see more adamant the call writers/put writers are.

HDFCBANK Highest Open Interest Visualization

JUBLFOOD Highest Open Interest Visualization

RELIANCE Highest Open Interest Visualization

TECHM Highest Open Interest Visualization

PNB Highest Open Interest Visualization

MARUTI Highest Open Interest Visualization

BANKINDIA Highest Open Interest Visualization

POWERGRID Highest Open Interest Visualization

AXISBANK Highest Open Interest Visualization

SBIN Highest Open Interest Visualization

RCOM Highest Open Interest Visualization

If you have any interesting thoughts about this visualization or you find something interesting about highest open interest do share here in the comment section.

Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

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4 Replies to “Highest Open Interest in Stock Options Visualized”

  1. Fantastic. I’m so glad I bumped into your website. Just loving your analysis and visualizations. Thank you so much for sharing your knowledge with us.

  2. Where can i get different stocks charts with Highest open interest visualization

  3. they provide dynamic support and resistance levels..up side resistance levels frequently get broken in volatile stocks.

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