iCharts Discussions

[shekharinvest]

Anand

Thnx for your lucid explanation for your American and European types of call.

What I got is, for trading purposes both are same.

Call/Put for stocks are in American format.
Call/Put for Indices are in European format.

Therefore, whenever, we will buy Call /Put of Nifty it will be CE /PE only
and when we buy Stock options they will be CA /PA.

SHEKHAR

[shekharinvest]

Anand,

PCR has been very clearly explained by you.

The only question I have is that you have assumed 4300 to be the support based on high PCR of 6 (Aug. 19 data) but on 4200 it was even higher at 15 and if we go little lower at 3900 it was at its peak 25.44, similarly for the data of Aug. 20, 4200 is having a higher PCR than 4300. If we leave 3900 which is quite deep and may not be possible to achieve in the one week remaining, why cant we assume 4200 to be the possible support.

SHEKHAR

[ConMan]

Shekhar

First on American/European types of options...yes you got it right.

Secondly on PCR...As the PCR keeps going higher for lower strike prices it can be safely assumed that the market will find it tough to break these this month. So breaking 4300 this month is gonna be really really tough for the market. The higher PCR for lower strike price also means that the market will not have a free fall.

Hope this clarifies....

PS: I am a newbie and have started exploring options recently.....I might be completely caught in the wrong foot....Really want experts to correct me if I am going wrong somewhere or add value by their comments.

[san77s]

Hi Anand,
I was searched NSEINDIA.com for PCR of all strike price. But i didnt findout, i got only for combined one. Please give the like to see all strike price of option.

Thanks & Regards,
S.Saravanan

[ConMan]

Hi San

Go to nse website....on the right hand side there are two topics...equities & derivatives....just go to derivatives....there is another link called option chain....click on the same... you will get Open Interest data of all strike price....

By the way PCR for nifty is above 1 for the first time plus PCR of 4400 is above 2.3....does it show a bull run...lets see

Regards
Anand Rathi

[san77s]

Hi Anand,
Thanks for your reply. Yes that open interest data i got it, what i want is PRC Percentage like you added in your post

Call OI Strike Price Put OI PCR
312,350 4000.00 2,984,800 9.555946854 .

Shall we calculate it manually? i want this "9.555946854"

Regards,
S.Saravanan

[svkum]

I would like to correct the confusion in reading the implications of PCR.
We have to accept as all analyst and marketmen thinks, that
lower PCR = bearish view
higher PCR =bullish view

Because , put and calls are taken as they are written (short) and not bought.
hence in beraish view ppl are writing more calls
and in bullish view ppl are wruiting more puts.
AS per above explaination PCR =blow 0.9 taken as oversold mkt
and PCR = above 1.1 as bullish and above 1.3 as overbought mkt

I hope i explained the concept in right perspective.
S V KUMTHEKAR

[ConMan]

Hi SVKUM

Thanks for your comments....While I do understand that people do write options...the percentage of people writing options are not high....in fact shouldn't be more than 10%.

If lot of people write options...then the theory of 90% of the people who trade options loose money will not hold true....

So If PCR is 1.5 we should assume the right PCR at around 1.25/1.30...so according to me, finding extreme bullishness/bearishness using PCR holds true.

Regards
Anand Rathi

[ConMan]

Hi All

Now 4400 strike price PCR has gone above 3....which indicates the closing has to be above 4400...no big downfall expected.

Interestingly,when I was trying to find out if we can replicate PCR on stocks I found that Unitech's Rs.90 strike price has got high OI in CE....the PCR is less than .5...does it mean we will not close above Rs.90 ???? Only issue is if market participants invest in options in stocks, I mean stocks F&O volumes are not as high as Nifty. So the picture that the options portray may not be right...lets wait and watch

Anand Rathi

[ConMan]

Hi

Now we are closer to expiry & hope not many people are caught with PUTS in hand. Personally PCR has helped me to save a lot of my capital & with the help of few other fellow Ichartians was able to buy 4000 CE. Hope it helped you as well. Lets start concentrating on few options strategies for the time being & then move to PCR by mid next month

Strike Price PCR
4400.00 3.56300956
4500.00 2.433789824
4600.00 1.544907758
4700.00 0.619864959
4800.00 0.092391111

njoi....

Anand Rathi

[ConMan]

NIFTY FUTURES CLOSES AT 4688...MUCH ABOVE THE EXPECTATIONS OF MANY PEOPLE....HOPE YOU ENJOYED THE RIDE......

[sachingw]

anand,

if pcr is low say below 0.5 what does it indicate?


how to find upper side limit for nifty by using pcr?

if pcr is not gradually increasing with gradual fall in strike price what is its importance? if any

[ConMan]

Dear Sachin

PCR will be an effective tool post 15th of month, currently trying to find trend using PCR will not work. Neither will it give any clear signal

[ConMan]

I know its very early to comment on market movement basis PCR. Couldnt stop myself from writing...

PCR at 4600 is at 2.7 &
PCR at 4500 is at 6.42

We just need to see if market makes some many PUT buyers profitable

Regards
Quick Gun Murugun

[sherbaaz]