Sir, I saw that, if open interest in put decline heavily and price up, it means next day market may go up because covering in put. Similarly, if open interest in call decline heavily, it means possibility of market go down next trading day due to call covering (short covering). Sir as per my analysis I found that continue watching 5 weekly expiry options. Sir pls suggest me am I right or wrong??

2019-08-14 08:45:35

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    Senior Analyst
    2019-08-14 09:39:17

    Yes you are right. Market has and equilibrium. This is a zero sum game. When Put call Ration Increases we see unwinding and when PCR decreases we see short covering. Hence it's one of the fantastic toll to predict market direction. But need to be filtered with other techniques.