Interpreting top 10 open interest – 23-September-2011

This item was filled under [ Traders zone ]

As options open interest shows us the footprint of smart money/big players, so lets try to decipher their footprint. Here is the list of option strikes (September expiry) that have got highest open interest as of Friday’s close.

S&R levels as per OI - 23-Sept-2011

Observations –
1) 4800 and 4900 CALLs have seen good addition in OI making them immediate resistance for current series.
2) 4600 PUT has also shown very good increase in OI making it stronger support level.
3) 4700 PUT has seen drop in OI indicating this level might not provide any support here.

Interpretation –
1) We are in the last week of this series hence change in OI could be very fast. As per the highest OI at this stage, 4600/4700/4800 are potential support levels.

2) Resistance level is currently built up at 4900 and then at 5000 level.

4) This being last week of current series, the quick look at next month’s OI indicates good build up of CALLs at 5200/5100/5000 level and PUTs at 4800/4700/4500 levels.Hope this analysis helps you in forming your own views on market. Feel free to drop your comments on the post. Let me know if you would like to see something more in the analysis.

Disclaimer These are my views on the market and I could be wrong in reading it. Please use your own judgment and make sensible trading decision based on your own analysis.

Be Sociable, Share!
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Comment