Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and 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. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Increased Volatility and Flipping Option Writers

1 min read

Nifty Hourly Charts
Nifty Spot

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Nifty and Bank nifty spot on the hourly charts maintains the positional sell mode and currently the resistance zone comes around 7693 and 15569 respectively. Reverse your position to positional sell mode if the resistance zone breaks on the hourly charts on closing basis.

Bank Nifty Hourly Charts
Bank Nifty

India VIX Hourly Charts

India VIX showed a little increased volatility for this week and maintains the positional buy mode and currently the support zone comes around 16.6037.

India VIX

Open Interest

Let us like into the timeline of open interest which gives a picture how the option writers behaved for this month.

June 4th – The June Option series Open Interest picture shows 7500CE call writers are active so far which in turn reflects a possible resistance around 7500 on EOD basis. As the option series is very new it is still very early to judge the based on the open interest

June 8th – Open Interest built up is still higher at 7500CE and despite call option writing at 7500 nifty surges and closed with a weekly return of 4.88%. 7500CE and 7600CE are the highest open interest builtup on the call side.

June 11th – 7500CE writers unwinding their position there is not major put writing or call writing visible so far across the strike prices.

June 16th – After strong IIP numbers call writers start targeting 7700CE, 7800CE and 8000CE by building higher open interest.

June 17th – Market shooted up 100+ points and there is a Flip in Open Interest Picture 7500PE writers emerging again.

June 18th – Market fallen down 100+ points and once again there is a flip in open interest 7600CE and 7700CE writers taken advantage by building higher open interest.

flip

Overall – There is a confused state among the call and put writers and the overall picture of the market is moving in a sideways direction.

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and 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. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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