Today the Higher Open Interest among the february nifty option series has shifted from 5200PE to 5300PE inicating that 5300PE is written by the put writers and they are more optimistic that 5300 will hold for the current option series. It should be notes that initially Nifty February series begin with writing 5000PE strike.
Nifty February series begin with writing 5000PE strike price with highest open interest among the series. Also there is condierable amount of option interest visible in 5200CE and 5300CE. Spike in open interest in these option strikes in the upcoming sessions could drag the nifty towards 5050 zone.
Intrestingly higher open interest among the option series is seen on 5000PE Nov Series with almost 8 lakh nifty option contracts kept open. which indicates that option writers are more bullish that nifty will hold above 5000 level for the current option series. Also on the daily charts it is been observed that most of the shorter term technical indicators are oversold.
Nifty August Option Series start with almost equal amount of Higher Open Interest at 5400PE and 5700CE which indicates that 5400 could be a possible support zone as put writers are defending 5400PE by building higher open interest at that strike price.
Among the options strike prices 5400PE holds the huge amount of Open Interest which shows that put writers had raised their support levels from 5300 to 5400.
Also there is a considerable amount of open interest built up seen in 5800PE which indicates call writers are little active over there.
Chart shown here is the 13 days of 5900 PE and 6000PE historical Open Interest data. The Blue bar is the open interest data & the red bar signifies the change in open interest data for a particular day/session. Black line is nothing but the Option strike price.
Iam just very curious about the volatility distribution among the various strike price of Nifty Options. And From the chart it is observed that ITM(in the money options have low volatility when compared to OTM(out of the money options).
Marketcalls lauches Live Open Interest Tracker for Nifty options(Calls/Puts) for current series. One can track the Open Interest Picture here – Nifty Options Tracker Snapshot of the Image shown above