Comment on Open Interest, MaxPain & Put Call Ratio(PCR)

Gyan,

Nifty future OI hasn’t gone up significantly, so this suggests even though there has been a big move it is not backed by huge OI addition, so may not be a convincing move.

For options, you need to track both the calls and puts OI, just calls won’t be enough. But if a lot of calls are being written, then ideally according to Max pain theory, market will not go up much.

Cheers,

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