I have a Basic doubt. You mentioned 7 lac addition to 5400CE and 30 lac added to 5500CE.
CE means that everyone is expecting to go up for that particular strike price. Since i am new, this was my understanding.
my query is, if oi added then how it become Bearish. Kindly apologize if questions look silly. But appreciate if you could provide an answer so that i could understand.
Adding CE means smart money is shorting, expecting the expiry to be below that level. It's always the big people selling options that make money, not the buyer.
That's why good analysts use the option data/movement to confirm their technical analysis.
Hope this helps. Not sure whether Kumar is responding to the queries past few days.
As my corporate life is coming to an end by 23JULY10, I may not able to update any of my blog from 01AUG10
I am going to take over my father's business shortly in kumbakonam.
If anyone visited kumbakonam, you can meet me in my hotel/lodges (Hotel gowri shankar or Abirami lodge or Hotel sivamurugan). All are in new bus stand.
Dear Kumar,
ReplyDeleteI have a Basic doubt. You mentioned 7 lac addition to 5400CE and 30 lac added to 5500CE.
CE means that everyone is expecting to go up for that particular strike price. Since i am new, this was my understanding.
my query is, if oi added then how it become Bearish. Kindly apologize if questions look silly. But appreciate if you could provide an answer so that i could understand.
thanks.
Prabakar,
ReplyDeleteAdding CE means smart money is shorting, expecting the expiry to be below that level. It's always the big people selling options that make money, not the buyer.
That's why good analysts use the option data/movement to confirm their technical analysis.
Hope this helps. Not sure whether Kumar is responding to the queries past few days.
Thanks
Ajay
All,
ReplyDeleteAs my corporate life is coming to an end by 23JULY10, I may not able to update any of my blog from 01AUG10
I am going to take over my father's business shortly in kumbakonam.
If anyone visited kumbakonam, you can meet me in my hotel/lodges (Hotel gowri shankar or Abirami lodge or Hotel sivamurugan). All are in new bus stand.
Till next weekend i will update my blog.
Thanks for your support.
Dear Kumaraguru,
ReplyDeleteGood to Know. I am from Chennai and Visited Kumbakonam many times.
My Heartiest Wishes and Good Luck to your new Endeavour.
With Good Wishes,
Prabakar
Hi Anonymous,
ReplyDeleteThanks for the explanation. It will help if you could say, how to figure out whether a CE strike price is Bought or Sold?
Thanks again.
hi
ReplyDeleteplease keep updating
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so please keep updating or else keep a touch with us
my email ankitjain502000@gmail.com
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