How to Find a Trading Mentor? (தமிழில்)
Call writers are traders who have sold call options of varied strikes, expecting that the underlying will not go above those stipulated strike prices. When the underlying price rises and crosses the strike price of a very high open interest call option, these option writers are possibly said to be trapped and most of them would start unwinding their short positions and possibly shift their open positions to other strike prices, i.e. rolling their positions to higher strikes or OTM strikes.
Price + Open Interest Analysis Emperical evidence has it, The moves which are backed by additional Open interest participation have higher probability of sustaining. Validating a breakout in Nifty/Banknifty in conjunction with Open Interest will help in trading breakouts confidently.
5+ years of market experience, mentored several people in options trading. Sound understanding of the concept of demand and supply zones using option strategies.
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