The post got delayed today. Hence posting a short summary from the post at Vtrender-2.
Back Ground :-
1) Huge gap between 5325 and 5233 which is a single print seller.
Chart Speak :
- poor highs
- failed auction at 4816
- structure not strong with a dpoc at the bottom indicating short covering rather than genuine buying.
Posts
4 comments:
Even when the Nifty was ruling at 5200, there was buying and writing going on in 4500 call.Could you suggest what could be the strategy of those buying these calls?
4500 call or puts?
We noticed buildup in 5100 puts at the start of the series and then 4600/ 4700 puts.
All of which have proved profitable in due course.
As CS, has mentioned, it could be hedging of long portfolios or savvy writers who understood the range.
Intra day OF charts updated.
if you see the 4500 CE activity for the past 30 days, you will find that some people were buying calls of 4500 , when the market was ruling at 5200.
Yes, it was 4500 CE (and NOT 4500 PE).
Could you offer plausible reasons,other than the obvious which immediately comes to mind.
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