Option Chain Premium Analysis (HINDI)

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Option Chain Premium Analysis is very critical to find the direction of the stock market. The premium of an option is the most ignored factor for Option Chain Analysis. Now as an investor or trader, you must be wondering why Option Chain Premium Analysis is important?

The premium of an option is directly proportional to the probability of strike price being hit or at least the market movement in that direction. Therefore, the relative decay in the premium is a very reliable parameter to identify the direction of the share market.

The basic criterion is
1. To consider only the out of the money or OTM contracts.
2. Consider the two strike price on PUT and CALL side with highest OI.
3. After that calculate the decay in a sequential manner i.e. with the movement of the stock market. The latest value should supersede the existing value.

After that based on the number of values, you can find out the average decay in premium on put and call side. If the decay is less on PUT side than the CALL side than the market will go down. On the contrary, if the decay is less on the CALL side then the market will GO UP. The reason, less decay in premium means that particular side (bull or bears) are optimistic about the share market moving in that direction.

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Comments

Rahil Sakrani says:

Please like this comment if below statment is true

I am supposed to record data as per monthly expiry

pradip dave says:

Sir, if I join channel than can excess this sheet from your website which is password protected?

Sushant says:

Hello sir
I'm new in options
I have a query

When to record these values
During market hours
Or
After market hours
I.e at the end of the day
???
Please solve the query

Vikas Sharma says:

than you sir. excelent

Sudeep Devadiga says:

How do you select range of series, is it on highest oi or volatility. Oi can change daily and so will range, secondly its range and not necessarily market will come there in that case ,how to plot premium. Pls help

Gaurav Patil says:

Sir, where to find link to this sheet?

the man says:

sir isko monthly expiry per analysis kare ya weekly

SOHAM LAKHOTE says:

Hats off sir!!! Thank you so much.

Dilip Kumar Singh says:

Sir, In this video of premium decay analysis,You have stated that premium have to record after market closing every day.After market closing, it is not necessary that market will close near strike price like 10300,10350,10400 against which,premium have to be recorded at equal interval.Please clarify this big doubt.

Gaurav Patil says:

Hello Sir, As per your video this analysis should be done on EOD basis. But my Q is does the same analysis is applicable for intraday?

Vilas Ramteke says:

very good information not found anywhere as a beginner watching video is much helping to me

Nadeem Khan says:

I love your way of teaching, you keep things very simple Sir.

Nikhil YADAV says:

loved it sir ji❤️

rajesh Jagtap says:

Sir stocks ke liye bhi time Decay ka example video upload kro na plz.

unnaMed says:

Hope you are able to see historical data of option chain, now a days

Irfan Kapadia says:

Does anyone has the automated sheet? Please share.

lalit sharma says:

Sir maine 19500 PE liya tha morning m ab Monday ko kya hoga sell kru ya hold kren

pankaj sharma says:

Sir camera thoda. Pass hota to accha tha

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