Hello Staff,
I’m studying to do the OI interpretation and i’ve the under queries.
on Friday(03/01/2025) from 9:20 to 9:45 I noticed general oi change on the put and name facet is sort of comparable however the value was dropping. I must know why this a lot drop occurred.Is it due oi change occurred name facet close to ATM.?
May some one inform methods to interpret this.
That is simply the primary day. OI solely turns into essential while you get nearer to the expiry.
A giant put OI at 24000 stage tells you that there are that many choice sellers who’re assured that the market gained’t fall under 24000. Similar for calls. The logic is that choice sellers are speculated to be sensible cash who’re higher at predicting and even driving the market.
However it is just a idea, it usually doesn’t work. IIRC Wednesday’s OI buildup was strictly towards the 400 level upmove that occurred on Thursday. And this was the expiry day, the place OI was speculated to be essentially the most related.
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