Option Chain analysis

F&O
1

Hello Experts

I have just started to learn trading in Options and hence looking at the Option Chain data on NSE site.
I need some clarifications for below pointers - Pls help

As we say, if OI is going up and Premium is going up then it is a Bullish sign, but even though this is happening on the NSE Option Data for most of the Out of money strike prices, experts say "huge CALL WRITING is happening at those Out of money Strike prices. So the underlying asset has a huge resistance etc.

1 - so the OI and Premium prices displayed under CALL section on NSE Option page - are they all only the CALL SELL position ? or they are mixed of CALL Sellers and CALL buyers ? If they are mixed of Sellers and Buyers then why people say there is huge CALL WRITING happening ?

2 - Similarly on the right side of the page, PUT data is shown. So are all the PUT Sellers OI and Premium data ?

Pls help.
Thanks.
NJ78

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2

@Sensibull , Can you.

3

did not understand…

4

Please understand following points
1.Open interest is formed only when option writers sells position.
2.if some one buys from option sellers and sell back to another seller, this does not create open interest
3.if open interest is created there is also buyer at same time , like volume.
4.only when option seller square off open interest is down

With all this point when u see open interest is rising and premium increasing , it means option sellers are losing or hedging or whatever,so it’s not that if oi increasing in call spot price gonna fall , it’s just option sellers view.

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