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RupeeCase Learn/Path 15/Beginner

Option Chain and Data

Reading the NSE option chain column by column, open interest and its change, PCR, max pain, liquidity, participant data, the expected move and GEX as a model.

  • 13modules
  • 119 minof reading
  • 30question path test
  • Freewith a certificate
Start at 15.1See the stops

01The line

13 stops, 13 live.

The chain is a table, not a forecast. What every column counts and in which unit, what open interest can and cannot say, and which popular readings fail a test against the data.

0of 13 done on this device

  1. 15.1Reading the NSE option chain, column by columnStrike in the middle, calls on one side, puts on the other. What each number counts, and what it does not8 min
  2. 15.2OI and change in OI on the chain: what they can and cannot tell youOne pair of contracts, one buyer and one seller. What the open interest columns count, and what they cannot tell you8 min
  3. 15.3Put call ratio: definitions and what the evidence saysPuts divided by calls sounds like one number. On one evening the Nifty chains gave six. What the ratio counts, and what it cannot see7 min
  4. 15.4Max pain: the calculation and a Nifty testA sum over the chain that picks one strike. How it works, and a test against the plainest forecast there is7 min
  5. 15.5Liquidity in the chain: spreads, volume and tradable strikesEvery row has a price. Not every row has a market. Three checks on volume, open interest and tick size9 min
  6. 15.6Participant wise OI and FII derivatives data, read honestlyFour groups, long and short contracts, and a ledger that must balance. What the FII ratio shows, and what it cannot8 min
  7. 15.7Expected move from the straddle and from IVTwo routes to one range, and what the range does not say9 min
  8. 15.8Who is on the other side in IndiaEvery option has a seller. NSE publishes four groups and a ledger, and a sign for gamma exposure needs more than that10 min
  9. 15.9Gamma exposure: the computation and its assumptionsThe arithmetic of GEX is exact. The sign is assumed. The same chain gives a small positive total, a large negative one, or a small positive one10 min
  10. 15.10Zero gamma, call wall and put wallA line on a GEX chart looks like a level. Here is how it is found, why it moves by hundreds of points, and whether a wall held10 min
  11. 15.11Pinning and max OI strikes: the evidenceOne expiry day looked like a pin. Three tests ask whether it was a pattern, and what a fair verdict would need10 min
  12. 15.12Vanna and charm flows around expiries and eventsThe size of a vanna or charm flow is arithmetic on a chain. Its direction rests on who holds the option, and no NSE file says12 min
  13. 15.13An Indian positioning model and its limitsNSE participant data is the one public input on who holds what, and only by group. It has no strike, no expiry and pools every index, so the answer still depends on assumptions11 min, path test

02Outcomes

What you will be able to do.

  • 01Say what every column of an option chain counts, and in which unit
  • 02Find the at the money strike from the future, not from the spot
  • 03Explain why open interest alone does not show who bought or sold
  • 04Test a chain reading such as PCR or max pain against a plain forecast

03Certificate

Pass the path test.
Keep the proof.

  1. 1Read the modules and try each quick check (optional)A pass gives that module's own certificate
  2. 2Take the 30 question path test21 correct to pass, drawn from 195 questions
  3. 3Get the certificateWith an ID and a QR code
Jump to the path test About the certificates

04Questions

About Path 15.

What does Path 15, Option Chain and Data, cover?

Reading the NSE option chain column by column, open interest and its change, PCR, max pain, liquidity, participant data, the expected move and dealer positioning, each tested on dated data.

Does max pain or PCR predict the market?

The path tests both against a plain forecast on dated NSE expiries. On the evidence in the file neither has shown it can; the question pages give the count.

Is the chain in Path 15 live?

No. Every chain is an NSE end of day file at least 30 days old, dated under its chart. There is no live chain on RupeeCase.

Explore next

Where to go next.

Before this pathPath 14: Options and GreeksBeginner, 17 modules Pillar guideDerivatives and Quant115 modules F&O on RupeeCaseHedging only, in developmentProtection for a portfolio you own, by a published rule

Education only, not investment advice, a research report or a recommendation to buy, sell or hold any security. RupeeCase (QC Alpha Technologies Pvt Ltd) is not registered with SEBI as an investment adviser or research analyst. Contracts and prices shown are for illustration only, come from NSE end of day files at least 30 days old, and are not recommendatory. Derivatives trading carries a high risk of loss.