Can I find out what’s the maximum number/ active of straddles being sold by looking at oi data ? Can someone explain how can we identify that ?
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I don’t think that is possible to do.
I do see some PPL claim, smart people have sold 15000 straddle … How does one find that out ?
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I think if Open interest of same strike price increased on both call & put, they assume people are going straddle.
It’s a mere assumption.
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Sounds like something PR Sundar says. It’s usually a guess made by looking at the OI data in both CE/PE side.
This is 1st April 2021. I noticed that a lot of interest had been built up around 33400 CE/PE. When I noticed that, I had also taken position for intraday to get some profit from the range bound market. (My earlier trade was a Short straddle in 33500)
^ attached position from that day. APR1 was a expiry day.
Enjoyed some decay and then booked profit.
Market moved up and saw some short covering on that same day. Market closed around 33900/34000.
I will end with this quote, “You see, You do not observe” - Sherlock Holmes.
Haven’t started selling straddles as yet…
Understand the difference between Astronomy and Astrology.
The stock market gives “Open Interest” and “Price” of a given “time” of a given “security”. Nothing else.
Unless Rakesh Jhunjhunwala tells them He bought 10 shares of SBI this morning, You will never know he bought 10 shares of SBI this morning.
Now there are different theories based on the Open Interest thing and one such of interesting theory is Max pain which tells “On option expiration day, the underlying the price of the underlying settles at a point that brings maximum loss to option buyers.”. You can read more on that here - https://unofficed.com/how-to-trade-options-using-max-pain-theory/
But Understand the fact that the entire theory is based on an assumption.
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There are also very interesting theories on Option Chain’s IV to predict a big selling interest. But again, that’s an assumption. (Assumption - There will be a sudden drop in IV on huge selling).
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So, either the guys You are followed are telling it based on one of such assumptive theories or They are astrologers. With the current pandemic of headless tipsters, the second will be more probable.
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Absolutely Agree . I wanted to understand how they are making such claims… Is it through some analysis or some random guess.
DIdn’t ask if you were selling straddles. Hope you picked a thing or two from my example 
Thanks for following up… Not yet . I am playing with Strangles still .