Options Market Exit is more important than entry
In this video, a Data-Driven approach to take proper & effective EXIT in the Equity/Derivate market is discussed.
Options trading involves risk and it's essential for traders to have a well-thought-out strategy, risk management plan, and a good understanding of the market conditions.
this EXIT trading stands as a widely adopted strategy in options trading, designed to recognize and capitalize on noteworthy market price shifts. This approach relies on momentum, seeking to secure profits from abrupt and substantial price changes typically observed following an extended period of consolidation or trading within a specific range.
Solution --- Price OI Percentile
The term price percentile refers to a statistical measure that indicates the relative position of a particular price within a given dataset. It represents the percentage of prices that are equal to or below a specific value. Same holds true for Open Interest Percentile.
Price Move along with participation (Open Interest Increment) has More Probability of Sustaining
Therefore, certain observations are discussed in this video regarding the dynamics of Price and OI percentile, their thresholds and focal points, which need to be considered, before even considering the importance of a particular directional move, either Bullish or Bearish.
The key ingredients for establishing sustainable breakout scenarios involve considering the percentile position of the price and taking into account open interest positioning, as well. A more detailed explanation of this approach is elaborated in the accompanying video.
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Seasoned derivatives expert with over 6 years of experience across equities, derivatives, and commodities markets. With a proven track record of successful trading and deep market insights.
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