Option chain Analysis II Secret of Money Making II Option Trading
Welcome to your own channel Trading with Tarun this video is made for the flowers who have commented on our old video requesting for it we will learn how to mix Price action and Option Chain together so that you can learn to make good money in Nifty, Bank Nifty or Option Trading in future if you are new to market then its very risky to trade in options without learning People make and loose money in option trading very fast let me tell you one fact - India is no-1 Country in the world in Option Trading Option is the most risky trading and Indians are no 1 in risky trading so lets learn how to learn the option data also learn how to identify the upside or downside movement where is support and resistance using option chain data & how to mix it with price action to make it more profitable don't forget to watch the video till the end to learn how to use PA+OC together & make money from it if you are new to the channel subscribe & like the video guys you need to go on NSE's website to see the data you need to click on market data then on Option Chain as soon as u click on that this page will come, lets learn how to read & understand this page data this data will be there in stock brokers account as well easily lets understand this point by point you need to select here which data you want to see Nifty, BNF or any stock data you want to read if you want to do stock data so you can choose that stock from here you can select the expiry and study the data for trading you can select the Index from here NIFTY,BNF OR NIFTY FIN again you can select stock from here. there are 157 stock available & listed under F&O in total lets talk about bank nifty data analysis this is option chain data on your screen for bank nifty this data is available on many places including your brokers panel let me show you and example this is zerodha, select any strike price and click on more then option chain and data will come after a pop up as soon as you click on it you will see the option chain data on your screen if you can see you also select the index or expiry information here now u may thing what is the difference only difference is visual presentation zerodha is visually batter so does upstox same data is available on Opstra website as well just click on open interest and then Option Chain data to see & study lets understand how to read this data lets understand the data on zerodha as its visually better so lets understand which point we need to remember here before data lets understand the 3 most important terms for options first term is ITM which is In the money strike price ITM is - a Number which is achieved already second Strike term is called ATM- at the Money ATM means strike price which near to the current price 3rd strike term is OTM - Out of the Money ITM- number achieved already, ATM - CURRENT PRICE OTM- NUMBER WHICH IS NNOT ACHIEVED YET LETS TAKE AN EXAMPLE AND UNDERSTAND THIS LET SAY BNF IS @35700 THEN 35700 WILL BE ATM IN THIS CASE IF YOUR STRIKE PRICE IS 35200 THEN THIS WILL BE ITM AS THIS NUMBER IS ALREADY ACHIEVED AND 36000 STRIKE PRICE IN CE WILL BE OTM AS THIS NO IS NOT ACHIEVED YET HOPE YOU UNDERSTOOD THE CONCEPT OF ITM, ATM,OTM let me delete this and see where & how do we use these 3 strike terms if you are trading on friday then you can buy iTM/ATM/OTM if you are trading on Monday /Tuesday then you can buy iTM/ATM and 3rd ad most important is Wednesday & Thursday if you are trading on Wednesday & Thursday then only buy iTM Remember this formula if you want profit in trading we do this to save our self from Theta decay which can eat your profit i will soon make a detail option on video under which i will discuss options greeks in detail lets come me back to option data and learn how to use these details two important things on the page is CALL& PUT call side is seen as resistance and put side is seen as Support you might ask sir , when market is falling we are buying PUT and when its going up we are buying CALL ? yes you are right when this happen you buy CALL and PUT on markets movement However when we option chain data its seen opposite of how we buy options call side is seen as resistance and put side is seen as Support lets understand these two yellow and white area now this is CE-ITM & i hope ITM meaning is clear already if not pls rewind the video and check that out anytime this is put side ITM THIS IS OTM CE SIDE AND THIS IS OTM PUT SIDE AND THE GREY LINE YOU SEE IN THE MIDDLE IS CALLED AS ATM STRIKE FOR BOOTH CALL & PUT SIDE lets understand how we can study it further SO ALL YELLOW AREA STRIKE PRICES ARE ITM AND ALL WHITE AREA STRIKE PRICES ARE OTM & GREY IS ATM THERE ARE FEW MORE POINTS YOU NEED TO REMEMBER THE MOST IMPORTANT POINTS ARE OI CHANGE AND IO THIRD IMPORTANT POINT IS STIKE PRICE PUT SIDE ALSO IO, IO CHANGE AND STRIKE PRICE ARE THE 3 IMPORTANT POINTS IO- TELLS YOU THE TOTAL NUMBERS OF CONTRACTS MADE ON THAT STRIKE PRICE TILL NOW FROM STARTING OI= TOTAL CONTRACTS OI CHANGE - THIS WILL TELL YOU NUMBER OF CONTRACTS ADDED OR CLOSED IN COMPARISON OF YESTERDAYS NUMBERS FOR EXAMPLE SEE HERE 0.10 WHICH MEANS 10,000 CONTRACTS WERE CLOSED IF YOU SEE HERE 8.5 LAC CONTRACTS WERE ADDED SINCE YESTERDAY IF YOU SEE CURRENT SP THEN TOTAL 6.9 LAC NEW CONTRACTS WERE ADDED TODAY ONLY
YOU WILL BE AMAZED TO KNOW THAT THIS DATA CAN CHANGE EEVERY SECOND DURING MARKET HOURS YOU CAN MONITOR THIS BY WRITING THE NUMBER ON A DIARLY OR TAKING THE SCREEN SHOTS on put side we can see on 35000 strike price total 3.8 lac contracts were added total contracts now are 8.7 lac this is how you can study option chain using OI change lets go a step further and see how to study more during market hrs all you need to check is which strike price has maximum numbers of contracts look this strike price has maximum contacts Call Side total 16 lac 70 thousand on 36000 SP PUT side if we see then we have 4 lac 30 thousand only You will be happy to know that in such cases 36K will act like a strong resistance as CALL side always shows resistance and PUT side data will show support in same manner so wherever you see maximum contracts on call side that will be strong resistance IN COMPARISON YOU NEED TO CHECK HOW MANY SUPPORTERS WE HAVE AGAINST THAT NUMBER SO HERE WE HAVE 4.3 BUYERS AGAINST 16.9 LAC SELLERS
NOW UNDERSTAND THIS WITH EXAMPLE IF WE HAVE TWO ARMY FIGHTING WHERE WE HAVE 16.9 LAC SOLDIERS ONE SIDE AND 4.9 OTHER SIDE, WHICH SIDE WILL WIN ? OFF-COURSE ARMY WITH MORE NUMBERS WILL WIN AND 36000 MARK WILL BE HARD TO JUMP FOR THEM IT NOT THAT ITS NOT POSSIBLE IT IS POSSIBLE IF WE HAVE MORE SOLDIERS PUT SIDE AROUND 24 LAC THEN PRICE WILL START MOVING UPSIDE LETS CHECK WHERE WE HAVE GOOD SUPPORT LEVEL HERE 14.5 LAC CONTRACTS ARE THERE ON 35000 STRIKE PRICE MAKING IT STRONG SUPPORT 14.5 LAC CONTACTS AGAINST 10.5 LAC CONTACTS WE HAAVE ALMOST 4 LAC EXTRA CONTACTS PUT SIDE BUT THIS DATA CAN CHANGE AND PRICE CAN COME DOWN NOW WE HAVE A CLEAR RANGE WHEREIN MAJOR SUPPORT IS 35000 AND MAJOR RESISTANCE IS 36000 SO WE HAVE A RANAGE OF 1000 POINTS FOR BANK NIFTY NOW DURING MARKET HOURS YOU NEED TO CHECK WHICH SIDE THE DATA IS CHANGING SO THAT YOU CAN CHECK THE MOVE OF THE MAKET FOR EXAMPLE OUR CURRENT PRICE IS AT 35800 AND WE HAVE 9.7 LAC CONTRACTS CALL SIDE AGAINST WHICH WE HAVE 6.1 LAC CONTACTS PUT SIDE ON MONDAY 19TH JULY IF THE CONTACTS WILL START INCREASING PUT SIDE & CALL SIDE CONTRACTS WILL START TO DECREASE THEN MARKET CAN TAKE A UPMOVE YOU WILL BE HAAPPY TO.KNOW THAT OPTION CHAIN DATA WILL HELP YOU IDENTIFY THE MOVE IN ADVANCE
POST WHICH YOU CAN USE THAT INFORMATION WITH PRICE ACTION TO TAKE PROFITABLE TRADE LETS HAVE A LOOK AT THE CHART WHERE YOU WILL SEE MARKET HAS TAKEN RESISTANCE FROM 35970 LEVEL MANY TIME NOW THIS IS A GOOD RESISTANCE LEVEL 2ND RESISTANCE LEVEL IS AT 35800 WHICH WE CAN VERIFY FROM OPTION CHAIN AFTER COMPARING THE OI DATA BOTH SIDE BAASED ON WHICH SIDDE DATA IS CHANGING YOU WILL SEE MARKET MOVING IN THAT DIRECTION SGX NIFTY IS NEGATIVE RIGHT NOW INCLUDING THE WORLD MARKET AND YOU NEED TO CLOSELY MONITOR AND YOU MIGHT SEE NUMBER CHANGING THIS SIDE SO YOU CAN MIX CHART PATTERNS PRICE ACTION ALONG WITH OPTION CHAIN DATA AND TAKE TRADE ACCORDINGLY USE OPTION CHAIN DATA AS CONFIRMATION TOOL FOR YOUR TRADES & DO NOT MAKE IT AS ONLY BAASE LETS UNDERSTAND HOW THE PRICE RALLY COMES YOU CAN SEE BIG CONTRACTS CREATION ON THESE LEVELS NOW DUE TO ANY PUSH OR A GOOOD NEWS IF PRICE CROSSES 36000 LEVEL THEN SL WILL HIT FOR ALL THESE SELLERS AND THEY WILL BE CONVERTED AS BUYERS AND YOU WILL SEE GREEN CANDLES UPMOVE BECAUSE SELLERS ARE TRAPPED AND STOP LOSS IS GONE SAME SITUATION IS PUT SIDE AS WELL WHERE IF PRICE GOES BELOW 35400 YOU WILL SEE RED CANDLE RALLY DOWNSIDE AS WELL AS BUYERS WILL GET TRAPPED CAAUSE OF STOP LOSS SO YOU CAN SEE THESE RALLY BOTH SIDE EXAMPLE CAN BE THE SITARAMAN CANDLE LETS SEE THIS ON THE CHART, THIS IS THE SITA RAMAN CANDLE WHERE SELLERS GOT TRAPPED AND WE HAVE SEEN BIG RALLY UPSIDE AGAIN YOU CAN SEE THIS OPTION CHAIN DATA FROM MULTIPLE PLACES
2021-07-21 09:05
