KINDLY ANYONE SHARE THE LOGIC BETWEEN, PEOPLE SAYING ABOUT OPTIONS WRITING DURING MARKET HOURS, EXAMPLE 8000 CALLS WRITTEN HEAVILY OR 7900 PUTS WRITTEN MORE THAN 8000 CALLS … HOW THEY CALCULATE IT AND ON WHAT BASIS IT IS SAID, ANY LOGIC BEHIND THAT … REQUEST YOU GUYS TO CLARRIFY THIS. THANKS
We can know this by tracking open interest data. Generally When Open interest on that particular option is more it means that Option is Shorted/Written more than other strikes. Open Interest will change daily depends on market sentiments. Generally in normal conditions ( Means no special events ) Where the Call Open interest is more think that will act as Resistance zone and Where the Put Open interest is more think that will act as Support zone for that series.
Some traders are there who trade depends only on open interest data but it requires more knowledge than the Technical analysis. If you want to know more or want to track live Open interest data please go through this link.