InvestorQ : Can the put strikes also be evaluated based on the shift in OI data?
Dhwani Mehta made post

Can the put strikes also be evaluated based on the shift in OI data?

Answer
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Khushi Patel answered.
2 years ago


Ideally, you need to look at the shift in the open interest with the shift in price change in case of puts also. The table below captures the gist of how one can interpret the different combinations of shifts in open interest and market price to arrive at an interpretation of whether you must be bullish or bearish on the particular put option. Here we look at different strikes of the Nifty Put options to get an idea of how to interpret the shift in Oil data.

PUTS

strike

Put LTP

Put Price Change

Put Change in OI

Put Net OI

Put Volume

price change

OI change

Interpretation

TREND

9800

1.45

-1

-58950

2955750

22173

DOWN

DOWN

Long Liquidation

BULLISH

9900

1.7

-0.9

7125

1423275

17438

DOWN

UP

Short Build-up

BULLISH

10000

1.85

-2.1

-41700

3806700

42501

DOWN

DOWN

Long Liquidation

BULLISH

10100

2.2

-4.3

4800

1567575

60357

DOWN

UP

Short Build-up

BULLISH

10200

3.25

-8.4

-25650

2502675

123788

DOWN

DOWN

Long Liquidation

BULLISH

10300

4.7

-16.65

228225

2084175

156621

DOWN

UP

Short Build-up

BULLISH

10400

9.3

-29.05

515100

2703825

228707

DOWN

UP

Short Build-up

BULLISH

10500

18.8

-49.35

1255050

4233600

394224

DOWN

UP

Short Build-up

BULLISH

10600

40

-76.95

1005600

3076800

263115

DOWN

UP

Short Build-up

BULLISH

10700

82.45

-102.95

71625

956700

63957

DOWN

UP

Short Build-up

BULLISH

10800

159.15

-115.75

-12600

247200

8116

DOWN

DOWN

Long Liquidation

BULLISH

10900

248.6

-123.7

-30225

122625

1663

DOWN

DOWN

Long Liquidation

BULLISH

11000

348.7

-124.25

-34050

601200

2361

DOWN

DOWN

Long Liquidation

BULLISH

11100

455.15

-116

-11625

38700

264

DOWN

DOWN

Long Liquidation

BULLISH

11200

547.45

-124.2

-15150

124125

304

DOWN

DOWN

Long Liquidation

BULLISH

11300

648

-118.05

-5175

59475

133

DOWN

DOWN

Long Liquidation

BULLISH

As in the case of calls, it must be noted in the above table that this puts versus OI analysis purely based on two data points and there are more data points required for interpretation. Hence this needs to be taken with a lot of other data items too before taking a trading decision on whether to buy or sell a particular strike Nifty.