OOM Call Options seen more open interest despite of Nifty fall

Nifty Jan derivative series has added more Open Interest in Out Of Money (OOM) calls despite of Nifty’s 80.50 points or 1.28% fall. The 6,300 Strike price has added higher number of 804,950 shares. Next to that 6,500 Strike Price has added 679,700 shares. Wherein 6,400 Strike has added 426,200 shares.

Overall Nifty has 48,715,950 shares in call (Total number of Open Interest available for all outstanding Call options) and put has 39,202,950 shares in open interest (Total number of Open Interest available for all outstanding Call option for the given symbol). That gives the put/call ratio of 0.80 (39,202,950/48,715,950). Option data raises questions about either the fall is going to be short lived or beginning of major down-fall. Mostly likely, it is going to be short lived if Nifty continue to raise in a day or two.

Please be noted; Open Interest data doesn’t give significant inside information about either the direction of the market. In this case, there is a possibility that call writers could have written more calls with the aim of Nifty trading below 6,300-6,200 levels.

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