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Option Chain Analysis | How to Read NSE Option Chain | Nifty Option Chain से Trading करे - YouTube
Channel: Samco Securities
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Hi, I am Apurva Sheth
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and today we will discus about option chain analysis
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Many people wrote in my last few videos
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that make video on option chain
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So, Today i am coming with a new special video
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Please watch till the end
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I am sure that you will get good insights
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and also you will get new tools
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so that you can do option chain anaylysis easily
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So let's start this video
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To do Option Chain Analysis first you have to go to NSE home page
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You have came to the NSE Home page
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You can see the NSE home page on the screen
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Here we will type Nifty in Search Bar
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Nifty in derivatives will come
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when clicking on Nifty in derivatives
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You will get lots of options
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From this we will go to the option chain
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As soon as you click on the option chain
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A big table will appear on your screen
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this could be a little bit of overwhelming
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but don't worry
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I will make it very simple
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infact i will share you the tool
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In which
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You don't need to see this table
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Option Chain Analysis
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you can do it without seeing this table?
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and
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you will be able to do easlily
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I am very excited to share this with you.
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I am sure that you will also be excited
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So, Lets Start this Option Chain Analysis
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as you scroll down a bit
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you will se the main thing
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which is
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Underlying which is Nifty
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Today it is 8th April
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after closing the market
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i am recording this
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you will see the Nifty Closing Price
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seventeen thousand seven hundred eighty-four
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which is showing
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and
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Timing is showing 3:30 pm
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If you want to do live market analysis
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then
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on the live basis time will updated
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and
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Contracts have value that will also be updated
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2nd Main Thing
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you can see
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which is
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Expiry date
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Nifty and Bank Nfity
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Both
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Weekly and Monthly
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Both the basis expiry are shown
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So,
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You have to
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the long list which is been shown
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which specific expires you are looking
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to do Option Chain Analysis
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You can see there
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Now
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The
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Latest Expiry in Nifty
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will on 13th April
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14th April will be thrusday but there is a holiday
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that's why the expiry is one day before
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on 13th April Wednesday
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So,
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for expiry 3 trading secession are remaining
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So,
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Now for Analysis
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the main important thing is
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which is
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you have to do it by weekly basis
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option contract analysis
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or
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by monthly expiry
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Both 2 things
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are most important expiries
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For Analysis
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Other than this
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in the middle like the 21st of April
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So
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In that expiries
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volume are little bit low
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but still you can see it
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to get a perspective
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So, Now we will do
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13th april ki option chain analysis
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as soon as you scroll down
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you will see the big table
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top heading are been divided into call and puts
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So,
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on call or puts i have made approx 3 videos
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where i have made a seperate video on calls and puts
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and
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when you have to buy and sell call and puts
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All the three topics i have made a seperate video
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clicking on I button you will get the links
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So ,
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if you are new in options
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and want to know about call and puts then
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click on I button
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and watch all the related videos
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As soon as when you see the down rows
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you can see many different values
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So,
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the first and the most important value
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in Option Chain Analysis is
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Open Interest
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You can see OI
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That is Open Interest Short Form which is been used
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after that the main important thing is
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which we have to keep eye on that is
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change is open interest
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you can see in the second coloumn
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after that you can see the volume
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Option Contracts
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day to day basis volume you can check
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after that you can see IV
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IV is the short form of Implied volatility
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Implied volatility means
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How much volatility market is expecting next
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and
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on that basis option's premium's are deceided
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Next we can see LTP
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LTP is nothing but Last Traded Price
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you can see what is the last trading price
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next we can see change in price
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in this you can see what are the changes in price
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Next you can see the Bid quantity Bid Price
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Ask Price and Ask quantiy
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So,
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in which price how much quantity you have to buy
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also in which price and how much quantity you have to sell
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you can get all the details in this
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Last but not the least is Strike Price
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Strike price is playing the most important role
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and here you can see in
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every 50 50 ruppes distance there is a strike contracts
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and that you can see here
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You can see all the value's for both call's and put's
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As soon as you scroll down
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then you can see
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option chain is divided into 2 different shades
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top left section is in yellowish paint
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bottom right section which is put's section
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it is also in the yellowish shade
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What is the reason behind it
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All the strick price which is less than spot price
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than part is in yellowish shade
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that is called as ( in the money call option's )
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and
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all the put option whose strike price is higher than cuurent price
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is called as ( in the money put option's )
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that is why it is shaded in yellowish colour
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In the Option Chain Analysis the main important thing is
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( Open Interest )
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and when doing Option Chain Analysis
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everytime Option Chain Analysis should be by sellers prepective
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bescause
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everytime seller invest more money than buyer
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bescause
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seller takes more risk as he is more knowledgeable
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and also more risk takeing capacity
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So, Everytime
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those who do option chain analysis
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it is by the seller's prespective
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the rest whenever trade happens
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when Buyer and Seller meet then trade happens
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but everytime
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prespective will be counted, it is counted by the seller prespective
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now we will talk about the option chain analysis
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1st and the most important thing will you get
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So, Option Chain Analysis
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it is easy to find the support and resistance
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and also i have been told you
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doing Option chain anaylsis
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it will be by seller's prespective
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Please note , In which strike price the open interest is higher
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if you want to find out the resistance
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then see in the call option
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Who has the highest open interest on strike price
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If you have to find the supports then
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then check in put option side
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which strike price the open interest in higher
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what we talked earlier about the yellow shade portion
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those are in the money strike's option
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and
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Non shaded Portion are
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are out of the money strike's options
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these call and put
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maximum open interest strike that you have to find
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are most porpobably you will find out of the money zone
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for eg,
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Currently nifty in trading at 17,784
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here, where you can see the maximum open interest in call side
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we are looking at the mose recent weekly expiry
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13 April is expiry
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in 13th april expiry you can see
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on eighteen thousand strike price
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1 lakh shares open interest is visible here
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1 lakhs contract open interest is visible
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and after that the highest open interest at the strike of 18,500
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1,68,521 is the open interest right now
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at
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18,500 strike of call
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and on the lower side
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Where will you see the support maximum?
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Tho support is coming from the bottom side
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at a maximum strike price of 17,700
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and
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next major support is visiblle on the strike price of 17,600
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here the open interest is 74,136
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And after this 17500 to 71,412
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So, Immediate Small Range Coming Out form Option Chain
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that is 17,700
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where in the put side 78,000 contract open interest is visible
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and on the immediate basis
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on the strike price of 18,000
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there we can see the open interest is to high
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which is 1,05,811
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This is the main tight range
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Whenever Nifty comes out above or below it
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then that would be a point to note
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that Nifty is currently in this range
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Once, Nifty starts trading above this level
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then a trend may emerge
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Now out of these tables for many people
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for Finding and analyzing this data can be a bit tedious.
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I'm going to get a simple thing for you
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there is one website name niftytrader.in
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from this website the option chain analysis
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you will get in the pictorial format
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So let's see the website
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here you can see the page of nifty trader.in
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where you can do option chain analysis very easily
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here on the top right you can see 2 options
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one is the table view same as the nse website have
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Same to same you will get the table view
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and the second one is chart view
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clicking on the chart view
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here you can see the specific charts
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So now you can easily see on your screen
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here you can see open interest is by default
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and by default only you can see the contracts of current expiry
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If you want to check contract for other expiry then you have to register in the webisite
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registration is fully free
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and when the registration is done
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then you can do option chain analysis on the expiry of the rest of the contracts.
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so as we saw
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on the strike of 18,000 you can see the maximum open interest
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here you can see the blue bar
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which is for call options open interest
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so here it is very easy
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Call option in which maximum open interest is easily visible
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then we saw on the strike if 17,700 open interest was maximum
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So here too you see the same
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the maximum open interest you see on this strike
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the main thing you have to note here
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when we were looking for open interest data on NSE's site.
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that was in the number of contract terms
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and here you can see
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number of contracts multiplied by lot size
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which is x50
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So , it is one and the same thing so don't be surprised
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from this particular thing
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you can find the support and resistance very easily
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So,
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will just check the weekly and the monthly expiry
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So we can see the maximum open interest of the put at strike of 17500
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on the top near 18,000 levels
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There is maximun open interest even at monthly expiry
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for a short term prespective
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17,700 and 18,000 you will get all the support and resistance
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slightly from wider prespective
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17,500 is the bottom
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and
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the resistance is Stands at 18,000 level
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now we go to one step futhur in option chain analysis
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we have done with call open interest concentration and put open interest concentration
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support and resistance
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but
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how to identify and change the trend that i will show
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here also we have to check the shift in open interest
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so for that you have to concentrate on change in open interest
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so for that
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click on this tab and you can see the change in open interest
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so here you can see
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Open interest on majority websites has increased today itself
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but the funny thing is
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today on the strike of 17,900 the open interest is low
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So, the price is rising, but the open interest is decreasing
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it means that the convection of the call writer has been shaken a bit.
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they have lightened their positions
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just bescause the market has ralleyed
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so that here you can see the market is 144 Point's higher
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and the strike is 17,900 but the open interest is low
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it means the market has the potential to go up a bit
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call writers they have lightened their positions
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so , this is one analysis that you can do from option chain
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So apart from this we saw that the maximum call open interest was on the streak of 18,000
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both in weekly as well as in monthly expiry
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So whenever the market moves a little further
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and if let's say 18,000 calls open interest starts decreasing
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then that would be a sign
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that market wants to pass 18,000 levels
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so that it is one indication that you can make long positions
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so remember one thing
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whenever the market goes up and call open interest is decreasing
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so that it means futhur bullishness expected in the market
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Now on the contrary, consider that the market is falling down
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Put open interest is decreasing it means
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there is furthur bearishness expected in the market
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so like i told
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always look from the point of view of an option seller
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So whenever the put option seller has reduced his position
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it means he is expecting that the market may go down
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and he dosen't want to take that risk
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So whenever you see in your option chain like this
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the market is going down and the put options in open interest is decresing
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so you should be careful that the ability to go down the market has increased even more.
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and last but not the least
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but whenever the market rises or falls their is no change in open interest
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So its meaning should be looked at the trend with suspicion
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So I also told about my open interest in my last all videos.
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What is the healthy sign of any trend in the market?
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it is when the open interest is simultaneously increasing
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weather it is rise or fall
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If Open Interest Is Rising Then It Is Considered Us Healthy sign
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But when open interest is not growing, they should be watch in suspicion
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So all these things you have to do in Option Chain Analysis
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so that's all in the video
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I hope you will like the video of Option Chain Analysis
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beyond Option Chain Analysis
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many such as put call ratio and max payne analysis
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if you want these videos then please comment down below
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then i will definetly make the videos on that topic
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So , till then thank's a lot please like the video do subscribe to our channel and hit the bell icon
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THANKYOU
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