Trade with options data Part 2

bkb

Well-Known Member
#3
Re: Trade with options data

Hi Kiran,

What is your view on TATAMOTORS? IMO, Options data does not seems to be providing any trend.
 
#4
Re: Trade with options data

puts and calls in the market are created by call writers and put writers

1.call writers write the call options and sell them in the open market with the intention that a stock price cannot move beyond a level and sell them at a particular price -- so if they see that the price of stock moving beyond a point they just want to cover up the open positions and close the contract and thus the oi decreases
so call writers are considered as generally having a bearish view

2.put writers write the put options with the intention that the stock price wont fall further down and then sell a particular contract at a strike price in open market so if the value of the stock is falling down they tend to cover up their open positions otherwise they will be in loss

so put writers considered to be having a bullish view


hope this solves u r doubts

Great comments in this thread! Very true and speaking loudly of mature experience.
 

Arsh

Well-Known Member
#10
Re: Trade with options data

Slew of quarterly results lined up today -- Reliance Infra, Reliance Power, Unitech, HDIL, Deccan Chronicle, Piramal Healthcare, Pipavav Defence!

Deccan Chronicle shares down almost 5% ahead of it's Q1 results!

The July inflation data, which is expected to be released around noon today, will give direction to the market. Sensex is up 2.2 pct in August!