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Open in appTrap Indicator: Trading Call and Put Writer Traps
Call writers sell calls expecting the underlying to stay below their strikes. When price crosses a strike with very high open interest, those writers may be trapped and start unwinding or rolling to higher strikes, which can push the call premium up quickly.
This video explains that mechanism for both call and put writers and shows Quantsapp's Trap Indicator, which flags a call writer's trap as a bullish setup and a put writer's trap as a bearish one, so a trade can be planned on the data rather than overthinking it.
What you’ll learn
✓Why option writers get trapped at high-OI strikes
✓Call writer's trap as a bullish signal
✓Put writer's trap as a bearish signal
✓Using the Trap Indicator to plan a trade
Read and practise
SPEAKERDharmendra RajbharTrainer
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
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