InvestorQ : Can I identify strangle levels from the options chain data?
rhea Babu made post

Can I identify strangle levels from the options chain data?

Answer
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2 years ago


Yes, that is perfectly possible. This is a classic give away of a range bound trade. A short strangle is normally a range-bound trade where you sell higher calls and sell lower puts. This is an indication that the stock price is likely to remain in a range. Large traders and institutions have the confidence to write strangles only when they believe that the stock is unlikely to cross a particular range. These strangle ranges are quite obvious from these OI concentration trends. It clearly shows the view that institutions and knowledgeable traders are taking on the stock.