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Open in appTrap Indicator: Call aur Put Writer Traps Samjhe (Hindi)
Call writers sell calls expecting the price to stay below their strikes. When the price rises through a strike with very high open interest, those writers may be trapped and start unwinding or rolling, which can push the move further. The same happens to put writers on the way down.
This lesson explains the option seller's payoff, open interest based positioning and how open interest changes while writers are trapped. It then introduces Quantsapp's Trap Indicator, which scans stocks and indices for call writer traps (bullish bias) and put writer traps (bearish bias).
What you’ll learn
✓Option sellers' payoff and why traps happen
✓Open interest positioning around key strikes
✓How open interest changes when writers are trapped
✓Call writer trap as a bullish bias, put writer trap as a bearish bias
✓Using the Trap Indicator across F&O stocks
Read and practise
SPEAKERVarun ShettyTrainer, Quantsapp
Varun Shetty possesses rich experience in the field of training, he is amongst the best experts for gaining an understanding of Equity Derivatives Trading
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