Option chain Analysis - Short and Long Positions (HINDI)

Option chain Analysis Short and Long Positions help to find the direction of the market or stock quite accurately. This video is the 2nd part of the three-part series on the option chain analysis. It is important to analyze the change in premium and change in Open Interest to find out what is happening at a particular strike price.

In Option chain Analysis - Short and Long Positions, there are possible 4 scenarios for analysis. These scenarios are as follows

1. Decrease in Premium and Increase in Open Interest: In this scenario, the fresh short positions are built or in other words fresh short selling is done by the traders. In case of call options, the traders expect the price to go down.

2. Increase in Premium and Decrease in Open Interest: This scenario is for short covering. In this case, put or call writers or short sellers cover their position. Short covering is normally done to limit the losses.

3. Increase in Premium and Increase in Open Interest: In this scenario, fresh long positions are created. The traders are bullish on their position. The bulls expect the price to increase and bears expect the price to fall.

4. Decrease in Premium and Decrease in Open Interest: It means long unwinding. In short, the traders are booking profit and exiting their positions.

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Видео Option chain Analysis - Short and Long Positions (HINDI) канала Nitin Bhatia