Multi Strike SENSIBULL!

F&O
1

@Sensibull
Referring to the Multi strike feature of Sensibull.

  • The Nifty was at 15800 and at that time the ATM PUT has the highest OI among nearby strikes but when the market inched higher, The 15800 became slightly OTM.

Now my question is that the OI is created by the sellers and they write strikes which are OTM then why the OI decreased when the 15800 became slightly OTM?

Please answer.

Waiting for the responses…

2

@Sensibull

3

OI is created by sellers, if sellers are covering their positions then OI will drop. Sellers are free to sell or buy as per their conviction. If you see a drop in OI, it is because OI is dropping.

Sellers can write at OTM, ITM, ATM.

If you have found any discrepancy in data across OI between Zerodha and Sensibull then it makes sense to highlight that.

4

I appreciate your thoughts here.

But still I am confused that why the heck the OI dropped at the close to ATM/ slightly OTM (PUT)
As if the market rises, this is the time to sell more puts and hence they might also think of covering the calls.

Then that make sense. But still…

Am I missing out something?