How to analyze an Option Chain? | Option trading | CA Rachana Ranade
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- Опубліковано 20 лип 2024
- Looking at an option chain first seems like rows of random numbers, but it provides valuable information about security today and where it might be in the future. In this video, we will look at how can we understand the movement in the market using the Option chain and how we can trade options using that knowledge.
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What is covered?
00:00 - Start
01:06 - What is Call Option?
01.47 - What is Put Option?
02.27 - What is an Option Chain?
03:55 - What is Expiry Date?
05:19 - What is Strike Price?
07:36 - What is Premium?
09:38 - What is Open Interest?
11:32 - How to identify Support and Resistance using an Option Chain while doing Option Trading?
16:37 - Closing Thoughts
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To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, what are your thoughts?
I always found the idea of using spreadsheets very time consuming and unnecessary. I just dump a bunch of money into my savings accounts each month and keep my spending money in a separate account and try to spend as little as possible.
@@davidjackson4437 Yes i agree and right now the markets are going berserk right now. This is the best time to watch them, get to know them better, and strike when the opportunity presents itself. I learned that from my mentor, ’Tenley Megan Amerson’ she's seen dozens of market cycles over the past few decades, and she has a feel for how they move, why they move, and what comes next.
@@kollykolly Financial security through diligent saving and investing should be on top of everyone's priority ASAP. I really need some guidance can this Fin coach guide me in this unstable times and why do you trust them much?
@@gowonjake It's possible to statistically measure whether some decisions were wise. But in the real world, day to day, we simply don't. It's too hard. We prefer simple stories, which are easy but often devilishly misleading. the mentor I'm working with, made me know there is no faster way to feel rich than to spend lots of money on really nice stocks. It's really that simple!!!
@@kollykolly I know and am not doubting it, I understand people are good at learning by imitation, i found her website proficient and left her a message
Even after trading in options for 3 years, this video taught me important things today to identify support and resistance. Thanks Rachana...!
Madam, You are really great in explaining Option Chain so wonderfully. Many doubts i had and it got cleared. Thank you madam. Please Take Care.
crystal clear explanation... best part is anyone who knows little about trade/market can understand very easily without fail... kudozzz with thanks !!!
A big thumbs up for Support & Resistance explanation. You explained this concept in a very clear & short words. Impressed
Quite sad what's happening in the market. Although, even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. The market circumstances are driving me insane, my portfolio has lost almost $13K this month alone, my earnings are tanking. I'd appreciate some financial advice from anyone who knows more going forward.
The same high-yield potential exists in both bullish and bearish situations; what matters is how information and technique are used. Not neglecting professional advice.
@@reginastanfield7061 Focus on two key objectives. First, stay protected by learning when to sell stocks to cut losses and capture profits. Second, prepare to profit when the market turns around.I recommend you seek the guidance a broker or financial advisor.
@@thomasginola9809 You and I both agree. The more so because an investment coach's skill set is based on short- and long-term holdings for profit realization and their unique analysis makes it nearly difficult for them to underperform, I prefer having their input in my day-to-day investment decisions. I've had a coach help me invest for literally four years, and we've already made over $1 million in net earnings.
@@cuddyb9631 Inflation is over 8percent. The stock market is down 20% this year. Keeping my money in bank could be no good but investing is riskier, I wish to find better value deals as asset prices keep decreasing but lack the knowledge, mind if I look up your adviser? I admit this is the only way for amateurs like myself.
@@chrismillson2779 The coach I use is actually quite known, Susan Agnes Hancock. She has a wide presence on the web, so you can just search her.
Thank you so much Rachana, I do trade sometimes and fully aware of the option chain concept but premium part indeed was a new learning for me, totally worth it!
Thanks!
Bro, please tell me if both are support here then what is resistance
Premium correlation with change in OI was a new focus of discussion and extremely logical.
You are an awesome teacher. Found exactly what I was searching for months. After 100's of videos here I got the VVIP video for my Intraday setup.
Just because she is a chartered accountant
Did it work?
Mam that's why you are no 1 teacher.Belive me I have seen several videos on options chain but I was always confused,today my confusion is clear again.
Mam usually open interest is analyzed on the perspective of option seller (because option seller are hni or the people with high capital and they can do any thing to protect there position) but you thought to analyze on the basis of option buyers+premiums change new learning thank you mam
It's different! This is the first time I am seeing someone considering option buyers viewpoint. Everybody talks about Options writers are always correct 🙏
haan bhai...hm to pura confuse ho gye
option buyer should always gauge what's going on in option sellers mind n act accordingly because option sellers are more correct with their view on market direction... most of the time..
i agree. the explainaion is wrong
You're the best and coolest CA I have ever seen. Thanks alot mam. ❤
Just before watching this video, my assumption was .. If highest in call OI that level is resistance and highest put oi is the support. Now i understood, wait wait ...also look at change in option premium......Tnq mam
Thank you so much mam.. The way you had explained Option chain analysis changed my view to look at it.. And its really mind opener for me.. 🙂
ᴅᴍ ⬆️⬆️⬆️ ᴛᴏ ɢᴇᴛ ᴀɴsᴡᴇʀs....
Thank you so much ma’am for spreading your precious knowledge to us. 🙏🙏
Thank you for guiding us with so effection. Salute from the bottom of our heart! 💗💗💗💞💞💞💞
Great view for the double surity….combined with price action and charts movement together it would be mind blasting 👌🏻👌🏻👌🏻👌🏻👌🏻👌🏻
Thnx ma’am🙏🏻
In my opinion Option seller are basically kind of insurance provider since they take more risk by selling options. Mostly these are big institutions and FII who sell much more option contracts than combined few or many retailers, they have usually right analysis and mostly they control market. Unless someone is not willing to sell insurance, buyers cannot buy it. So more OI is because more sellers are sure about their position. Also seller has maximum risk to loose money and only profit is premium amount hence their views are strongest.
A good one. Clear explanation with a practical analysis in the option cahin. Cleared my longstanding doubt.
It's so lovely reading helpful information about coin trading here. How sad it is, that people would see this information but would wait on friend's or family's opinion before taking decisions that will change lives and improve their finances for good
It was very helpful to know that indices only have weekly expiry. Stocks only have monthly expiries.
नमस्ते mam, i saw many of videos about option chain but in this video i found new content about Option chain analysis thank you..
Never Seen Such a Down to Earth World Class Teacher in Cool Attitude....... Mam Wish Live Long and Educate and Empower More.
This is the best Option Chain analysis video I have ever seen. Kudos.
mala adhe madhe marathi tadka far chan vatato , watching your training long time from Germany you are really blessed with knowledge. keep it up helping people.
always giving the feeling of time is invested not spent
thankyou madam
abhar
Very simple English language in every video i ever heard...... thank you so much mam ....god bless you 💐💐
Today I got the real meaning of this data 🔥 thank you mam 🔥
Thank you ma'am. This cleared lot of doubts. But what about negative change in open interest? How to interpret that
she told only about support but not resistance
How the weightages of stocks should be understood in indices like bank nifty…thank you 🙏
Thanks a lot Rachna..... youvreally explains very well in very easy and understandable language...
Rachana Mam, thank you so much for this video. I have one doubt from this session, we found only support As per this option chain in this video, does it mean that there was no any resistance we could consider? Or else what could be the resistance according to option chain table in this video?
Ma'am, how can we find out the number of call or put writers using the option chain? Could you explain this point, please?
Thanku Mam...Every time you add-on something new in my knowledge.. Thanks a lot...
Thankyou so much rachana mam this is why you are so special on UA-cam across the languages...
Very clear explanation of oi, support and resistance. Very very nice
I would be value adding if you can teach to analyse option chain in live market for bank nifty or nifty. We will understand how it works for taking positions. Also PCR not explained.
Thank you.
11:40 onwards is enough to change ur life. You are the best.
Thank you Ma'am
Jai Hind
I feel so happy and energetic to myself to see you wonderful video.
Lots of Love
U r one of the best teachers I have ever come across in my life..keep the good work going madam
yes mam please teach us more about option chain , today i open my trading account but hesitate to any option at strike price .
i am watching your video every time to know about trading .
Watch my video and play with my strategy
very informative video ma'am , learnt something new gracias 🙏
Thank you so much for awesome lectures. At 10:32 Mr. A is call buyer and Mr.B is call seller, so when they are squaring off the contract Mr.A should be the one to buy (as he was right to buy) and Mr.B should be the one to sell (as he has obligation to sell) right?
Thanks, You are absolutely talented and teach in easiest manner. Salute !
Thank you for supporting the channel! sorry for the late response! :)
Mam thank you so much I have seen more videos but not understand ,but in your video its explain in very very simple way and I understand this option chain analysis. Thanks mam
Thank you this was the best version I have learned about the option chain.
Hi,
Is this a right time to invest in bond for a stable income, if yes what things should we consider while investing In a bond like covered, senior secured, unsecured, credit rating, premature withdrawal issues
Can you please make a video on this topic
Excellent explaination 👍🏼
But you said first one is strong support and second one is even stronger support. So which is resistance then? Little confused, sorry.
It was your video i saw when I started my Stock Market journey..
During covid lockdown times.
Today I am financially independent and free.
Journey is indeed ON
Thank you for sharing your knowledge. God bless you
rachana ji,in the theoretical example u said when a call buyer offers a premium to call seller to enter a contract.in the practical example when call option premium is increased which means the call buyer ready to offer more premium to call seller to continue the contract right?? so call seller will benefit right???
Hello! Madame
Once again, you are incredible, thank you to teach what to identify.
Nifty 50 index gap up target 18700 call option ,Nifty IT to rise and Infosys 1740 aggressive target Dec 12 to 15th....
Another Super Information mam , NO words , Just rocking again
Very well explained ma'am, thank you so much for clearing few of the doubts thru your video🙏
Just wanted to ask one query .. Open Interest shows big numbers.. for example Call side shows 80 lacs OI in 18k strike price but this includes 18k CE buyers as well as 18k CE sellers also.. SO HOW WE CAN FIND OUT whether sellers are more or buyers are more?
Thank you rachana.. Now I can able to understand Option chain very very well.. 😃
Hello Mam .. Along with the concepts explained in above video, Could u pls help make another video explaining about - OI , OI Change and PCR .. for more understanding of the Option chain.. 🙏
Oi means open interest.....it says how many open contracts are there on that strike price ...or you can say how much buying and selling are interested at the given price .....and simply change in OI means ....the difference between the previous contracts and current contracts.......
And if you see about PCR
It means put call ratio...
No. Of put divided by no. Of no. Of call .....so if put call ratio is more than 1 market would be bearish because the no. Of call option is less than the no. Of put ... that's why you got 1 .... And just reverse the condition...if you have PCR less than 1 ...market would be bullish....cause the no. Of put is less than the no. Of call option.......
I hope you got it ..🙂
Please make more videos on options concepts and trading…🙏
I have seen many option chain video but this is the best.. last m jo btaya that's was best
Hi Mam, uti index fund or HDFC nifty 50 index plan which one is good?
I am new to the stock market. Your method of teaching is very understadable,Thank you so much Madame. Do you run any on line courses on stock market?please reply Madame. 🙏
I'll be very candid while commenting I observe the quality getting more bookish with hardly any unique practical knowledge sharing I mean something which could work as an edge to the trader. So finally I understood that it's only the Guru i e.... Market itself which shall teach definitely with a price attached ( incurred losses ) which is worth to create learning and creating our own tested setup.
Hey, i am little bit confused if 15800 and 15500 both are support, then what is resistance
Thank you Rachana.,
You made us understands option chain in a simple way.👌
ufff finally lots of confusion i understand how to read this data so now m gonna do practice
thankyou rachna ma'am
thanks, as usual high in energy level of giving knowledge
What is support and resistance for banknifty option chain today
hi maam , thank you for video on option chain ,A very simplified explanation, which no one cannot. Can pls upload more videos on open chain analysis with explained examples .
Thanks Mrs. Ranade, I enjoy your videos, your smile makes viewers more joy. God bless you.
Pl.also make a series on CE IV and PE IV. If PE IV is greater than CE IV or vice versa. How to trade.
Thank you so much for such great knowledge we would like learn more with such videos on option chain advance analysis
Ma'am if both LTP change are red or green then with whom should we go at?
Suppose market opens gap up, so call premiums will increase, but then call writers starts writting calls. So at the end of day we will see that premium has increase today( bcz market was up today) and OI also increase( call writters write). So will we say that today call buyers thought process is right ? According to me now there is resistenence not support
HI,,,, its so simple and understandable about the option chain analysis.......
thank you...............
Very nice video. Thank you for clearing many of my doubts.
Hello ma'am. Stock of month , which u give us on every month !
How can 12 month 12 stock for long term holding sound correct ?
Kindly explain your student 🙏
Madam, If you made the video on the option chain analysis in depth, that to trading based on option chain, finding 2 supports and 2 resistances through single option chain analysis.
Please do a video in depth, it will be helpful to all madam
सही सांगितलं आहे या व्हिडिओत! 👍 धन्यवाद!
From this video, i can only understand support and resistance through OI and Change in OI. Other things, i didn't understand. Only seeing the OI, one can gauge the support and resistance levels only. Well If there's any better video on option chain analysis, please post it as a reply. Thanks.
For that they will you to buy their course.
As I showed max ppl at side as well max at seller side then how to take trade. Is it call buy or a put buy?
Thank you mam.. teaching power🤝
Very useful video. Thanku mam
I thought options sellers point of view is always considered in determining resistant and support because they are taking unlimited risks(margin used is also high), so their pov might be superior than buyers🤔
You are correct
They are institutions maximum time that they can short in a huge no so we considere higher open intrest
🙏🏻🙏🏻
Well explained madam, Thank you.
Thank you mam.... Zyadar apne ap ko stock market ka guru kehne wale log... Bas yehi bolte the ki bas sellers ke point of view se hi dekhna option chain
Had half knowledge till now. Thanks Rachana..
Madam, you are the Real Guru. In Kaliyuga. Great madam. Now am capable to find support and resistance.
DM me ⬆️ ⬆️ for more information
if i buy call option for a script for particular strike price expiry date 25 August. if the option becomes itm on 23 August and again become otm on 25 August. can i still exercise the option on expiry date
How many points rise can be expected in banknifty if all the stocks in bank nifty rise by 10 rupees each ?? Please enlighten… thank you 🙏
5:00 strike price , premium for call buyer
9:30 detecting support resistance level
Nicely explained thank you very much
addicted to watch your videos because it is very interesting.
Really you explained Nicely on Option Chain Analysis.....
Nazara technologies,Cams.,acrysil etc portfolio destroyed...thnku so much mam😊
@@-PUSHPENDRASINGHDIGITAL sory to say dat was sarcasm...itz negative comment...m in 50 percent loss in these shares which i have purchased after seeing your analyis...please guide on the same wot to do next...😊
You have made me impress your teaching is next level
Thanks Rachna 👍 for this video
thanks mam for always being there for me i am glad to have a teacher like you thank thank thank so much mam .
for example , If option chain for strike price 43000 CE have OI and change in OI, total = 100 , So do the 100 number have count of CE BUY and CE SELL both or just CE BUY. Thanks in advance.