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

Amol commented on 31 Aug 2015, 02:16 PM

Hi Nithin,
As you said the smart guys go shorting options in order to eat on premiums. As I look at the OI data, 8200 CE,8500 CE and 9000 CE have the maximum OI. I understand the 9000 CE has good amount of OI since they do not believe the market to touch 9000 soon. Hence the 9000 CE has been written. However why would they want to write the 8200 CE when the nifty is at 8000?

Also at the PUT end, 8000 PE and 7800 PE have maximum OI. When the nifty is at 8000, why would they take the risk of shorting an 8000 PE and a 7800 PE which is so close to the current underlying price?

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