In our previous Marketshala series blog, we had discussed Swing Trading in which we had discussed the Method of Swing Trading.
In another interesting session as part of the highly popular MarketShala series conducted by Elearnmarkets, Mr. Vivek Bajaj, Co-founder Elearnmarkets, and Mr. Chetan Panchamia a prolific intraday trader and trainer with many years of experience came together to decode how to identify whether there are option buyer or sellers by analyzing the option chain and open interest data.
Here is a short discussion of this session. If you want to get a practical understanding of how to identify whether there are options buyers or sellers in the market by option chain analysis, watch the full video at the end of this blog.
Table Of Contents
- What to find the weighted average price?
- How to analyze Option Chain data?
- How to use SuperTend Indicator with this data?
What to find the weighted average price?
For finding out whether there are option buyers or sellers we first need to calculate the weighted average price that can be calculated in the following steps:
- Firstly we need to get the option chain of Nifty 50, so go to the NSE India website, click on the live market then equity derivatives under the options chain and you will get the option chain of Nifty 50.
- Then we need to find out the highest open interest build-up in the call as we want to know whether there are buyers or sellers in this call open interest.
- Click on the LTP and a window will open in which we will get details on this call open interest.
