How To Be A Successful Option Salper With OI Pulse 14th Nov

HOW TO BE A
SUCCESSFUL
SCALPER
by
S I VA KU M A R
J AYA C H A N D R A N
Revised on 14th Nov 2021 1

C O N N E C T I N G T H E D OT S
FOR
OPTION SCALPING
• Dow 30 futures Chart Settings:

• World market, Crude Oil, dollar index, bond yield) • V WAP
• Vix • Super Trend
• OI Spurts 4 quadrants • Volume Candles
• OI Spurts and futures. • RSI
• IV data- 6 strikes • Parabolic SAR.
2
W O R L D M A K E T S A N D FA C TO R S I M PA C T I N G
OUR MARKETS
3
WORLD MARKET
• Markets to be tracked:
• US 30 ( in real time) it is called DOW zones in futures.
• You can track DOW futures through out the day.
• S&P 500 and Nasdaq (last night not futures)
• Depending on us 30 (last night) Indian market may open flat or down or up.
• When US futures trade in +VE we can expect our markets also to trade in positive.
• If the previous night US 30 markets have fallen 300 points and today in live market may have just
30-40 points in that case the future may not have a major say and market will follow the last
night live and not future.
4
WORLD MARKET
• If the US 30 market closes flat and US futures is trading in positive it will have positive impact on
our market. US 30 future’s will also take into account whats happening across the globe.
• On election results and budget days or on RBI policy announcements ,our market reacts to
domestic clues ignore the US market on those days.
• Other markets to track is DAX, CAC 40 and FTSE 100 in European market
• In Asian market we do track: Nikkei, Hang Seng
• What ever US 30 does in the previous night you will see the same follow up in Nikkei
5
WORLD MARKET
• Hang Seng is an emerging market and does

more or less same what Indian market will do.
• SGX nifty we should not track to understand
Indian markets.
• Chinese market will not have major impact on
our market.
Suppose DOW is rising and Nifty has not risen
• If on a particular day our market does not so far it can be a hint to buy depending on
other factors supporting us.
appear to be following DOW, you may We will buy this dip in Nifty when DOW is
going up near the support on the chart.
disregard DOW as a factor for that day alone.
6
HOW TO TRACK MARKETS IN
INVESTING.COM
Add watchlist
7
W AT C H L I S T T O T R A C K
Bond Yield
Besides the global indices you need to closely monitor the above, we will discuss its significance in
following slides. ( Bonus Knowledge)
8
CRUDE OIL PRICE
• Higher crude price will have a negative impact on the fiscal and current account
deficits of the economy. Increase in these deficits will lead to higher inflation and
also impact monetary policy, consumption, and investment behavior in the
economy. A 10 percent increase in oil price will increase the trade deficit by $7
billion, that is, trade deficit will widen by 560bps.
• To summarize a higher crude oil price impacts stock market negatively.
9
W H AT I S D O L L O R I N D E X ?
• The US dollar index is used to measure the value of US dollar against a basket of six major
worth currencies of the US’ significant trading partners.
• These currencies are Euro, Swiss Franc, Japanese Yen, Canadian dollar, British pound, and
Swedish Krona. The value of the index an indication of the dollar’s value in global markets.
• A higher reading means a stronger dollar.
• Whenever the USD is getting stronger major investors pull out their money from
emerging economy(India, Hongkong, Thailand, Taiwan and invest in developed
economies ( Japan, Germany, UK etc.)
• Historically whenever dollor index is spiking one can notice the fund flow going out.
10
D O L LO R I N D E X - I T S I M PAC T
• The appreciation or depreciation of rupee against the dollar impacts the foreign fund flow into
Indian equities.
• The strength and weaknesses in dollar also affects the profitability of Indian companies which
either earn a large chunk of their revenues in dollars or in import key raw material.
• The commodities and dollar-denominated corporate debt are also impacted.
• Where dollar index weakens, the rupee rises against the USD and vice-versa.
• When USD falls against the rupee, the foreign institutional investors (FII) and foreign portfolios
investors (FPI) get better returns on their dollar investments.
• Among companies, the exporters tend to benefit from the rising USD and depreciating INR.
• The IT and Pharma companies in India are major exporters of goods and services and receive
most of their revenue in USD terms.
• India is a major importer of crude oil. If the dollar rises, the crude oil gets costlier. It will affect the
profitability of the oil importers and Indian refineries such as IOC, HPCL and BPCL.
11
U N D E R S TA N D I N G U S B O N D Y I E L D
When US bond yields has direct corelation with inflation. When bond yields are going higher some
investors would take out their market and invest in bonds instead of equities. This is not good for
Indian markets. Higher Bond yield negatively impact Indian Share market
12
I N D I A V I X : V O L AT I L I T Y I N D E X
13
V I X A S A FA C TO R
• Market moving Higher and VIX cooling down -Bullish

• Market moving lower and VIX stable -Bullish
• Market moving higher and VIX Rising -Bearish

• Market Moving Lower and VIX Rising -Bearish
• Market in sideways & VIX is erratic don’t consider vix as a factor.
India vix is correlating with the nifty 50 Stocks and there will be certain
days where vix will not be a factor
14
V I X LOW E R I N G M A R K E T R I S I N G
15
WHY VIX RISES?
• In this chart there is more green bar than a red
bar which means at this point the market is not
headed for a major sell off.
• When there is tough fight happening between the
buyer and sellers the sellers are also making more
and more positions.
• If the seller is not creating the position VIX will
stay in the level where it is now.
• Market is falling from the higher level indicating
that it’s the buyers who are exiting the position
and not the sellers.
• At this juncture as a buyer also we should not
panic if VIX is not shooting and DOW is not
falling.
16
OPEN
INTEREST
17
W H AT I S O P E N I N T E R E S T ?
• Open interest is the position created in the future

or option segment to adjust their equity segment
position .
• Most of the positions are created by the sellers.
18
O P T I O N O I S P U RT S - 4 Q U A D R A N T S
Rise in OI Rise in Price Bullish- Long Build If there is 50% Increase And 50 Percent Increase in Price
(Quadrant1) up-Be an option in OI its is a clear cut trending day
buyer here
Rise in OI Slide in Price Bearish-Short Build If there is 50% Increase And 50% Decrease in Price this
(Quadrant2) up here-Be an option in OI is also a trending day.
seller her
Slide in OI Rise in Price Short Covering and Taking the open interest away
(Quadrant3) Price will go higher from the system either profit
booking or covering loss.
Slide in OI Slide in Price Long Unwinding To be used only to Long Unwinding (Profit Booking)
(Quadrant4) Better to Avoid- Hedge the large
Bearish position
On a Gap up or Gap down day avoid this formula till 10.30 am

19
TO S U M M A R I Z E T H E B U I L D U P S
• Price Rising Open Interest rising - Long Build up
• Price Falling, Open interest rising - Short Build up
• Price rising, Open Interest decreasing - Short Covering
• Price falling , open interest decreasing - Long unwinding.
We will understand all this in details when we study OI Pulse.
20
I M P O RTA N T P O I N T S
• It’s the sellers who create the OI in the market. If

sellers are covering their position it is called it is
called Short Covering.
• If the buyers are exiting the position its called
long un winding. So long unwinding is done by
Option buyers.
21
IMPLIED
V O L AT I L I T Y
22
IV IS THE FEAR OF THE
OPTION SELLER.
23
W H AT I S I V ?
• It’s the fear of the option sellers.

• IV helps quantify market sentiment and uncertainty,
• IV doesn't predict the direction in which the price change will proceed.
• High volatility means a large price swing, but the price could swing upward (very high), downward
(very low), or fluctuate between the two directions.
• Low volatility means that the price likely won't make broad, unpredictable changes
24
W H AT I S I V ?
• Options with high implied volatility have higher premiums and vice versa.
• Supply /demand and time value are major determining factors for calculating implied
volatility.
• When an asset is in high demand, the price tends to rise. So does the implied volatility,
which leads to a higher option premium due to the risky nature of the option.
• The opposite is also true. When there is plenty of supply but not enough market
demand, the implied volatility falls, and the option price becomes cheaper.
• IV increases in bearish markets and decreases when the market is bullish.
25
I V D ATA I N O P T I O N C H A I N
• Each and every stock will have an IV.

• Different IV show up in different Strike price in an option chain.
• We will be looking at 3 strikes above and 3 strikes below the ATM and get an
average.
• Average of IV on the call side is about 38 and on the put side its 43
26
I M P L I E D VO L AT I L I T Y I N T E R P R E TAT I O N
CE PE INTERPRETATION
10 10 Low IV good for Trend Play, Lower the IV its better for Option buyer as well as
seller.
10 15 Premium Erosion on high IV if market is against the trend ( This is also called IV
Crash)
20 20 Mostly Premium Erosion
30 20 Bullish on the side higher IV, when 10 point or more difference if market moves on
that direction
40 40 Stay away from markets or play short Straddle
Higher the IV Premium is high, Lower the IV premium is low

We need the IVs to be higher on the side market is moving, so the Premium will go higher along...
If not we will see futures rallying... But not the Options Premium...
27
• 2 -3 years back IV level used to be 10 and 10 on both call and put side and premium used to be
very low.
• IV level of 10 and 10 also indicates that there is no demand at all. It means that the sellers are
offering a product and there are no takers even at that premium.
• IV is similar to vix it indicates demand and supply.
• More demand higher IV, less demand less IV.
• If the vix shoots up IV also moves higher as demand too shoots up.
• The present higher IV is due to unexpected market moves.
If the sellers are controlling the direction of the market IV will be lower in the direction of the trend.
28
• On Nifty the IV is 20.78 and on

put side it is 26.49
• On call side 14800 is trading at
60.4 Rupees on the call side it is
trading at 84 Rupees on put
side.
• If the spot price is 14775 then
the intrinsic value on the put
side for tomorrow expiry
(14800-14775) will be 25
rupees.
• This means something that
should be trading at 25 rupees is
trading at 84
• On the call side entire premium
can go to zero if it is trading
well below 14800 Mark.
29
• On the higher IV side that is Put

side the loss of premium is 104
rupees but the gain on the call
side is only 36.35 rupees on the
lower IV side as the demand is
less that side.
• Higher the IV Higher the fall if
the market is against the trend.
• (IV Crash)
• When Market goes in opposite
direction... everyone will try to
exit... Automatically IV will fall &
premium will fall faster👍
• See this data from a sellers
Perspective. If the seller is
controlling a particular direction
naturally the IV will be lower.
IV will increase it gives a clue that buyers are coming in.
30
• Increased IV implies that the buyers
are coming in.
• If IV is going to be lower and market
is moving in the direction it means
still it is dominated by the Sellers.
• If buyers are dominating you will see
higher IV on that particular side.
• In this example call side IV is 20.89
and Put Side IV is 27.05. Because still
the buyers are coming and buying on
the put side. Because they believe
that the market has rallied too much
and they expect a fall to be
happening.
31
• On the other hand call side IV is only 20.89

because many people are not interested in buying
a call in todays market scenario.
• Also the rise in premium in the call side is not
much compared to the higher IV side.
• Because the buyers are exhausted on the call side
and they feel market may go down.
• However in the 2nd half if the market is not falling
the IV will reduce on the put side which indicates
that they buyers are unwinding their positions.
• Once buyers are exiting premium will crash like
crazy.
32
• Premium erosion on the high IV side will be

higher if the market is against the trend.
• So if the other dots are suggesting an up move
and IV is not supporting this up move it only
means that buyers are not there on that side and
move may not be sustainable.
• When the market is moving in a particular
direction and you see the IV higher on that
direction that time you can join the direction but
check the several aspects on the chart. If the RSI
is in overbought zone don’t even bother.
33
• In this example we can see that at

33100 the IV is 43.27 on put side loss
of premium is 323.15 compared to gain
of 144.35 gain on the call side.
• You can also see that in deep in the

money the gain is almost 297 rupees at
strike price 32400. So the potential
gain is more on deep in the money .
• Inspite the market moving 800 points

you are able to get only 297.45 points
move.
• When the IV level is same on the call

and put you will see premium erosion
very vey fast.
On Wednesday the IV normally crashes from higher to lower and
Premium erosion is rapid.
34
C H A RT T E M P L AT E S E T T I N G
FOR OPTION SCALPING
35
IN TRADING VIEW
In Trading view
apply Option
Scalping V2, and
do the necessary
settings.
36
C H A RT S E T T I N G S I N Z E RO D H A
Volume
SAR (0.02,0,02,0.2)
VWAP
VWMA (20)
Super Trend ( 10,2) 3 min
RSI 80-20
Open Interest
37
O R A D V A N C E C H A RT I N O I P U L S E
38
C H A RT S E T T I N G S
• Super trend setting has to be 10, 2 for a 3 min time frame and 7,3 for a 15 min and one hour
time frame.
• PSR dot above the candle is a sell signal and below the candle is a buy signal.
• Super trend above the candle and red colour is a sell and below the candle and green colour is a
buy
• Candles below the V wap is a sell and candles above the V wap is a buy.
• We need to check the other dots to make a buy or sell decision and not on one isolated move
or indicator in order not to get trapped.
39
I M P O RTA N C E O F W M A O N A C H A RT
▪ When ever there is a large gap between V wap and

Super trend , 20 period WVMA works like a first line
of defence.
40
RU L E S TO S C A L P I N G
• Levels at which you can be a buyer or a seller of a future:
• RSI above 50-75 is a buy zone
• RSI of 75-80 is a Profit booking zone no fresh entries to be taken here.
• RSI of 40-25 is a buy zone on a put side
• RSI 25-20 is the profit booking zone.
• RSI 40-50 is a no trade zone.
• To enter the trade in Bank nifty we need two consecutive candle and 50 K volume in a 3 min
candle the single direction. ( after 10.30 am) for Nifty it is 125 K volume on a 3 min candle.
• 3rd Candle is the entry and first candle low is the stop loss.
• Also because IV data is same and vix is more than expected. Vix need to cool off for market to move up.
• If vix is rising then it is a sell market on every rise.
• The gap between the Candle and the PSR larger rally can be expected. PSR below the candle is a
buy and above the candle is a sell.
41
2 C A N D L E T H E O RY O N C H A RT
Two Candle theory and

Buying Decision : If we see 2
consecutive green candle, RSI
between 50-75, and its trading 3rd Candle Buy
above the V wap, the PSR is
giving a buy signal Super trend is
giving a buy signal and good
volume more than 50 k, it’s a 3rd
candle buy with stop loss below
the low of first candle. As the
market keeps moving up and up
you will put previous candle low
as a stop loss as positional every
30 min you will have a new high
getting created and the low of
the new high candle will be the
new stop loss.
42
E N T RY P O I N T I N T H E T R A D E
The entry point in the trade

which is buy put on rise should
be near the V wap and Super
trend. Keep averaging on these
points. Provided all other data
are supporting the market
down trend, check Vix and
Dow also
In this pic the market is not
moving higher with Volumes.
43
BEST BTST TRADE CONDITION(ALSO
R E F E R TO 3 . 2 0 S T R AT E G Y
• Ascending
Volume
• Candle closing
on day high,
• Drop in OI
due to short
covering.
• RSI not in
overbought
Zone
• Take the trade

for next day in
the last candle
44
I M P O RTA N C E O F W M A O N A C H A RT
▪ On a non trending day a day of not large move WMA
acts like a small support or resistance and acts like a
first line of defence.
▪ Once WMA is broken the next level of support is

Super trend
▪ Once the super trend is broken the next level of

support is V WAP.
▪ Once V WAP is broken market can go lower and

lower.
45
S U P E R T R E N D M O V I N G O V E R V WA P
A Super trend V Wap cross over like

this can given 200-300 points move.
46
ANOTHER EXAMPLE OF SUPER TREND
A N D V WA P C RO S S OV E R
A Super trend V Wap cross over like this backed up by

good volume it can given easily give
200-300 points move.
47
S U P E R T R E N D V WA P M OV I N G TO G E T H E R
If V Wap and Super trend

travel together and the
market falls it can break
both levels at the same
time and go down faster.
48
S U P E R T R E N D V WA P M OV I N G TO G E T H E R
If V Wap and Super trend

travel together and the
market may not give very
big move unless it breaks
on the other side with a
cross over.
49
S U P E R T R E N D M OV I N G OV E R V WA P
Super trend crossing V WAP is a

signal that Market will move up.
50
TRADING -WITH VOLUMES
• The fall on the charts does not

have volume. That’s why the
VWMA and Super trend will work
here like a support level.
• Buy level is the V wap or super

trend.
• Trail the profit with stop loss.
• Deployed capital is not more than

20 to 30 percent.
51
NO TRADE ZONE
• Candle between super trend and V wap

is a no trade zone and it will be a buy if
it comes to V wap with a low volume.
Or goes to Super trend with a low
volume to Short.
• If the volume is large like the three green
candle in the left we should not be keen
on taking the support trade.
52
S TO P LO S S S C E N A R I O
Since the volumes are not there in the falling

market you need to build position at different
levels with stop loss being V wap where we
should exit all positions.
Average the position only when market can

take support at the chart indicators as
shown.
53
O P P O RT U N I T Y TO B U Y
If the price comes to super trend,

V wap or WMA it’s a buy again.
This is because the DOW is not
falling and the downtrend vix gives
all clues for the market to go up.
54
V O L U M E C O N F I R M AT I O N
When markets are rising the volume

bars are big but when its falling the
volume bar is not big enough.
This is a good situation for buy on dips.
55
N O N T R E N D I N G D AY C H A RT
If the gap in OI data of call and put is not much it will keep playing between V wap and Super trend.
56
FA L S E B R E A KO U T
NO FOLLOW UP VOLUME
57
E N T RY P O I N T I N T H E T R A D E
The entry point in the trade

which is buy put on rise should
be near the V wap and Super
trend. Keep averaging on these
points. Provided all other data
are supporting the market
down trend, check Vix and
Dow also
In this pic the market is not
moving higher with Volumes.
58
O B S E RV E T H E R S I W H E N M A R K E T
MAKES WILD MOVES
Above 80 RSI is an overbought zone, and it indicates small corrections at this level.
59
C H A RT O F A B E A R I S H M O V E
When market is going up its going up with a low

volume but when it falls the volume of fall is
much larger. This is a good sign for a bearish
move.
60
P L AY I N G IN THE RANGE MARKET
If the market is trading between V wap and Super trend it’s the most difficult period to trade as we
don’t know if its going to be above the v wap or below the super trend. Either of the zone is to be
broken with a volume to get the trend confirmation.
61
BREAKING THE RANGE
After consolidation the trend is established below the super trend, we will wait for two red candles
with 50 k volume, we will enter at the third candle and 1st candle high will be our stop loss.
62
B U L L I S H T O N E A N D D AY
HIG H C LOS ING
If you see bank nifty in this pattern

on a daily chart last 5 days have
closed in green on a days high
called bullish tone and the market
closes on days high but if there is
some profit booking based on
other parameters its not going to
be a good sign.
63
W H E N N OT TO C H A S E A T R A D E ?
When RSI already reached 20 level its not worth taking the risk in trade, there
is a strong possibility of trend reversal.
64
D E P L OY I N G C A P I TA L AT E V E RY D I P
30 percent
of capital to
be deployed
at each of
these levels
In the scenario as above, we should use every dip as a buying opportunity. We will be deploying 30% capital only on each buy level. If RSI is
cooling off till 70-75 its good news. But if it suddenly comes to 50 level then it can be a cause of concern. Also the size of the volume candle is
more on the bullish side. If we see few red towers then we need to be worried. We must always buy deep in the Money .
If the market is going into a consolidation mode then no point in holding the trade wait for the breakout to happen and
then join the party. We will follow the above two slides only in the opening trade. ( or else connecting dots)
65
I M P O RTA N C E O F D O W
AT T H E S U P P O R T Z O N E
• If the DOW is falling when the candle of

nifty or bank nifty are at support at
VWAP then we may have some issues as
well and market may fall from support.
66
D E P L O Y I N G C A P I TA L
67
DECODING MARKETS
USING OI PULSE
68
FA V O U R I T E S E L E C T I O N
69
FAV O U R I T E S E L E C T I O N -
CHOOSE AS IT SUITS
70
DA S H B OA R D
71
DA S H B OA R D
• DOW tells us how the market is going to be. The world markets is corelated with DOW futures and
it goes up and down based on what DOW futures does.
• Our market also gets guided by how the US Market behaved last night.
• When Dow future rallies we can expect India Nifty futures to rally the similar manner.
• ON the India vix we need a trend to emerge. If the trend is negative we can expect market to go
higher and higher.
• Vix plays a major role in Intraday and Positional moves. Vix will shoot up or down depending on the
people getting in on the sell side. Its explained later in the document.
• Crude and USD INR can have a direct co-relation on the nifty and bank Nifty.
• If crude goes up and rupee depreciates it will increase the inflation, and RBI will be forced to increase
the interest rates and it will impact the banks in a negative way.
• It will impact bank Nifty as Bank Nifty has 35 % weightage in the Nifty too.
72
C O N N E C T I N G D OT S
On a 15 min timeframe, each of the boxed components like dow, vix, volume, active strike IV plays a major role. You can also see the trend change
during the day.
73
On a 15 min time frame, each of the boxed components like dow, vix, volume, active strike IV plays a major
role. Whenever we will see a trend on a 15 min time frame we will get a major trend.
It tells clearly how the trend is shaping up on Intraday and positionally.
74
Bank nifty was overall bullish on the larger time frame in the morning. And Last one hour its turning out to
be bearish due to indicators shown above.
75
A D VA N C E C H A RT
Meeting Volume
Parameter
76
A D VA N C E C H A RT
• Besides the indicators

needed like, super trend,
WVMA, volume, super
trend, OI, there are
additional 120 indicators
that you can add to the
advance chart in OI pulse
itself.
• For indices we have chart
for current, next and far
month and for stock
futures its for current
month.
• Volume Parameter is
given only for indices and
not for stocks.
77
O S L P S I G N A L - G O A N N U A L P L A N O N LY
After Adding OSPL Signal save the layout in the right side top save box to reload it later to get the signal.
78
O S L P S I G N A L - H OW TO I N T E R P R E T ?
• Signal in Green means buy a call option or future long and it comes below the candle.
• Signal in red means buy a Put of Short Futures and it comes above the candle.
• In is the entry level,
• Out is the Stop loss level.
• Whenever we already have a signal, and we get additional signal it gives reconfirmation to our conviction to hold on to our position.
• Signal will be available only after the candle getting closed.
• If the signal is getting generated, it’s a confirmation that following candle is my entry.
• Never deploy more than 10-20% of your capital on a signal. You can still achieve your 1% intraday target.
• Consider the signal generated only and only on 3 min time frame, signals generated on higher time frame has not been tested.
79
L I V E T R A D E H I S T O RY
In live trade history you can get tick by tick buy and sell information displayed on the right side. With this you can track whether the move is
happening with volume or no volume on this page.
80
DECODING-FUTURES MENU
81
DECODING-FUTURES
MENU
O I A N A LY S I S
82
F U T U R E - O I A N A LY S I S
Get the Overall trend on a larger time frame of 60 mins. In this example it looks bullish. Between 10.30-11.30 am the day high
is broken and they are also making new OI of 48100 which is a bullish sign.
If price on the Previous close has increased and also the OI has increased this is a bullish sign.
Between 9.30 to 10.30 am though the volume traded is 9,97,275 but the OI change is only 575 which means existing positions
were traded and not fresh positions were made. We need to beat the volume of 9,97,275 for the trending move to be
happening in the bullish direction.
Long Build up means the price on that particular Instrument can keep moving higher
83
Short Covering means some one has covered his sold position, and this is why we see
the 50 no's of short covering.
84
F U T U R E - O I A N A LY S I S - T R E N D D AY
On a Clear trend day you will see price going up, OI increasing , long build up happening and day high breaking.
85
The shorter time frame are meant for scalpers who want to trade for 10 points and 15 points.
86
Between 13.30 to
14.30 there is a long
build up with LTP
Change of 142.35 with
OI change of 42,125
on a 60 min time
frame but from 14.30
to 15.30 the LTP
change is only 10.70
with a OI change of
70150,so we will not
carry forward this
position. To know the
reason lets see the
shorter time frame.
87
F U T U R E O I A N A LY S I S
This can be checked on a
5 min time frame lot of
long unwinding and short
build up has happened at
the higher level between
15.05 PM and 15.20 PM
It is not closing at days
high with a short covering
or long build-up.
Its closing with a mixed
emotion. So it is not
extremely bullish but
bullish as over all texture
of the market is bullish.
Still with a global market
support we can get a
good gap up.
We can use this feature to analyse all other stocks future to predict its next day behaviour
88
A P P L I C AT I O N O F L O N G B U I L D - U P
When market moves on account of long build up it means it can sustain the rally for some time.
89
F U T U R E A N A LY S I S - E I C H E R M O T O R S
Towards the fag end there is a

long unwinding happening at the
end of the day. We should not
carry a position in this
situation.
We can use this feature to analyse all other stocks future to predict its next day behaviour
90
S H O RT B U I LT U P F O R S C A L P I N G
This kind of short built up is used by hardcore scalpers to scalp at every possible
opportunity. Not ideal for people who are looking for positional setup.
91
POSITIONAL SETUP
For positional set up don’t change your direction unless the market direction is changed on a
larger time frame. It has strong buying increase OI and increase in price which is all set to be
bullish bias. In this scenario we should not bother much about 5 min or 10 min time frame the
reason is these are the temporary one’s to weed out the weak hands form the system. People
like Shiva will add more trade when market comes in the zone of Vwap and super trend.
92
SOME MOR EEXAMPLES
• In Nifty with just a change of
10875 OI short build up the price
fell down by 26 rupees
• But with OI change 8,21,400 the

price went up only by 33.85.
• This is not a good news. This

means for every rupees some or
the other unwinding keep
happening at the higher level and
some one keeps on buying so
price is not moving up hence not
good for going long on Nifty
aggressively.
In an ideal situation there should be 50 rupees
price change with 100000 OI change. Then there
will be a demand or else its more like a supply.
93
SOME MORE EXAMPLES
• With this kind of short built up the price should have fallen considerably. But since the
stock is highly liquid people will jump in buy and then take the price higher.
Any stock that is operator driven we should stay away.
94
E X A M P L E O F A T R E N D I N G D AY
On a trending day market keeps making new high and new OI is added every 30 minutes.
Any fall in this market is a buying opportunity. But when market is coming down watch
out for the volume. Volume has to be low.
95
DECODING-FUTURES
MENU
O I C H A RT
96
O I C H A RT
Explore
this tool
box
OI Charts will give you a clue on how the data has been trending on the future segment.
If the market is going higher along with the OI it is going to be a trending day.
In this market any fall will be a buy as it will give a significant advantage.
97
O I C H A RT
OI CHART FOR 10TH MAY 2021-SHORT COVERING TOWARDS THE END OF THE DAY
98
DECODING-FUTURES
MENU
O I S P U RT
99
F U T U R E S - O I S P U RT D ATA
Oi Spurt on future gives the 4
quadrant . In the long built up
we expect the price and OI to
go up gradually through out
the day for he price to keep
moving. Nifty and bank nifty in
the long built up suggests that
it is a buy on dips market.
In Short built up some one is
shorting the market for it to
go lower.
Anything coming in long
unwinding quadrant avoid
them, as no one is building
any position in them,
100
DECODING-FUTURES
MENU
OI BUZZ
101
FUTURES-OI BUZZ
Shows Visually the market movers of all futures at one place, long or
short,
102
FUTURES-OI BUZZ
OI Buzz tells you in one screen which of the futures are making a buzz either on upside or on
downside. Either deep green you can go long on it and it them shelves is deep red short it.
You can type a specific group or stock on the top search menu to find more details about it.
103
DECODING-FUTURES
MENU
MARKET MOVERS
104
MARKET MOVERS
Whenever a stock has broken 8 days high or

low it has further leg room to go higher or
lower.
105
DECODING-FUTURES
MENU
B A N K A L A LY S I S
106
DECODING-FUTURES
MENU
B A N K A L A LY S I S
107
B A N K A N A LY S I S - I N F U T U R E S
6 Prominent bank and their behavior on different time frame can be seen here.
108
B A N K A N A LY S I S - E X A M P L E
Either there is a long position or there is a short build up.

HDFC and kotak are retail one and SBI, Axis and ICICI are corporate ones they tend to move in opposite direction.
When corporate and retail are moving in opposite direction these are the days of consolidation.
When retail and corporate both participate in a rally that is a very good news for that sector.
109
B A N K A N A LY S I S
In the Future Analysis and bank Analysis if the hourly time frame can showcase that all the
banks are in long build up then you can definitely expect bank nifty to be bullish. But in this
example HDFC Bank is having Short build up.
110
DECODING-FUTURES
MENU
E O D O I A N A LY Z E R
111
E O D DATA I N T E R P R E TAT I O N
Explained
in next
slide
112
E O D D ATA I N T E R P R E TAT I O N
• On 26th of April where bank nifty went up to from 32221 to 32302 and approximate 96,950 OI
Change up by 5.85 %, Price up, OI up is Long Build up.
• On 27th of April price went up by 439 Points and OI Reduced by 5.82% it was short
covering.
• On 28th April again price went up and OI went up so it was long build up.
• Once the shorts are covered you are giving a clue that we are not expecting this
market to fall but to rise. In this scenario the buyers will come and buy it.
• Based on the EOD We can safely conclude that market is headed for a higher
opening on the 29th of April .
113
E O D O I A N A LY S E R - E X A M P L E
Tell exactly what happened on that day and what may happen tomorrow,
It also indicates how the big money has positioned them shelves in last one week.
114
On the charts ICICI was on absolute bullish zone of 60-70 giving enough signals for a major move
115
E O D O I A N A LY Z E R - I C I C I E X A M P L E
116
R E A S O N TO G O I N F O R I C I C I T R A D E
• The above slide is having ICICI Bank Analysis for last 10-15 days.
• This is a pattern.
• Just before the result of a major F and O Stock ( Like banks, ITC or Reliance,FMCG or IT
Companies) if you are seeing a continuous short covering it’s a bullish sign
• In ICICI you can see in the previous slide from 13th
• Short covering is happening very aggressively every other day.
• Many banks specially the corporate ones like IDBI ,Yes Bank, Federal bank and bank of Baroda
were posting good results, and this is the sign to look for.
• Also we needed confirmation from the next series of OI Data (See next slide from 13th to 25th
October)
• This gives a clue that this stock is on a roll and its rise is price is not going to stop here.
117
E O D A N A LY S E R – N E X T S E R I E S B U I L D - U P
IN the current Series we can see Q3 (short Covering) and in the next series we see Q1 ( Long
Build-up) This is a very strong bullish indicator.
118
AXIS BANK CURRENT AND NEXT
M O N T H F RO M 2 0 TH TO 2 6 TH O C TO B E R
ICICI and Axis are corporate Bank. Kotak and HDFC are retail bank. If one corporate bank is reporting a
loan growth other bank also will report similar growth. More over ICICI and Axis had been
underperforming compared to others.
119
I C I C I T R A D E - 1 2 . 0 6 L A K H S P RO F I T
120
WHEN TO AVOID A TRADE -RELIANCE EXAMPLE
No clear Signal-Are of Premium Erosion big time

121
A F T E R T H E R E S U LT B OT H S I D E
P R E M I U M E RO S I O N I N R E L I A N C E
122
S H O RT B U I L D U P O N B O T H C E
AND PE IN RELIANCE
123
C O M PA R E R E L I A N C E W I T H I C I C I
Long unwinding on 750 PE indicates that its not going to have
a big down move. As longs on put side are exiting.
CE side short covering on 750 CE and Put writing on PE side is a indicator of unidirectional move.
If we are going on the call side we are getting large short covering on the future. Large long build up
on the next series, and short covering on the call side also.
124
EXAMPLE OF BANK NIFTY
Except one day you can see long build up and short covering in the present month
125
BANK NIFTY NEXT SERIES
Observe the short covering in current and long build up in next series, this is closer to expiry
126
DECODING OPTIONS
MENU
127
DECODING OPTIONS
MENU
O I A N A LY S I S
128
O P T I O N S - O I A N A LY S I S
129
O P T I O N A N A LY S I S O F I N D I V I D U A L S T R I K E P R I C E
First choose a strike price and see the larger time frame, which in this case does not give a clear picture. Initially the trend was not clear between 9.15
to 12.30 but later you see Significant OI build up on the call side which means market is in the direction of moving down and short covering also
supports that market will go down. Plus price is moving lower and lower. So the Put side option seller on the strike price of 14600 are exiting position
and they can take the position on the call side to join the party. The long unwinding between 13.30 to 14.30 also proves that there may not be further
upside so the people who were long on 14600 are booking their position. It confirms the trend. Long unwinding and short covering by 13.30 to 14.30
confirms the market downtrend at this strike price. The price on the put options have gone from 71 to 113
130
O P T I O N S - O I A N A LY S I S
• It gives you an idea what is happening at a specific OI on the call or put side either in a stock
option or Index Option.
• You can change the strike price from the menu option and see the activity at the chosen strike
price in a given time frame.
• Analyze how the OI, price behavior with progressing trend give the confirmation of other
available information or not?
131
O I A N A LY S I S , I N D I V I D U A L
S T R I K E - S TO C K O P T I O N S
During the day there from 9.15 to 3.30 pm in Adani Enterprises at 1700 strike price at 60 min interval there is no clear trend as every
hour the data is changing. Ideally long build up on call side and short build up on put side indicates up move if this repeats hour after
hour as happening on 9.30-10.30 am . But from 14.30 to 15.30 data shows short covering on the call side indicating that there may be
up move the next day and long unwinding on put side indicates profit booking on put side. EOD data we don’t give much importance to
on individual strike price.
132
WHEN OPEN INTEREST IS INCREASING IN BOTH
CALL AND PUT
Lets look at the in the

money strike price of
33600 in the option
analysis of the OI pulse.
The OI in the PUT side
increasing due to long build
up and not short build up.
133
CHECKI NG A STRI KE PRI CE TO KNOW I F
T H E M A R K E T C A N FA L L F U RT H E R .
Spot price =14640, we are checking 14500 because ( OTM Strike for Put) If punters want to take the market lower they will be taking some
positions on the OTM Strikes as well. Here we can see that see OTM Strikes on put side getting covered and there is no long build up on the
call side. It Is expected that 14500 call price to fall and we should see a long build up happening on the put side only then there will be a
further momentum on the down side.
As long as long build up is not happening we should not take OTM Strike.
134
LETS CHECK ANOTHER OF IN THE
MONEY( LONGER TIME FRAME)
At 14800 we see long unwinding. It indicates that market is not going to fall further and lets book the profits we should not take fresh positions here. It also
indicates that we may not get any major moves. Only when there is a long build up then the writers will be frightened and the short
covering may start. Today the writers are controlling the market because markets are consolidating.
We know that as whose levels are more or less same on the call and the put.
Only when the buyers are coming on any one side the IV level can increase.
135
DECODING OPTIONS
MENU
O I C H A RT
136
O P T I O N S O I C H A RT
In this graph you can get call vs Put Open interest. It can be seen that at 11.30 am we have 1,175,050 Open interest on the call
side and 533,825 on the put side indicating a possibility of downward move of this strike price
You can zoom, download or see tabular form of data by clicking on the tool box shown in blue box.
137
O I C H A R T- S H O W N I N T A B U L A R F O R M
138
O I C H A RT S , C A L L O I / P R I C E ,
PUT OI VS PRICE
139
DECODING OPTIONS
MENU
OPTION CHAIN
140
OPTION CHAIN
• It gives a clear pic on where the short build up happening and where long build up is happening.
• The boxed OI is the maximum OI positions.
• Also we see IV data as it plays a major role in option prices. Higher the IV higher the premium and if call side and
put side IV are travelling together you can see premium erosion.
• 40 and 40 on IV you can play a Short Straddle.
141
OPTION CHAIN COLUMN
S E L E C T I O N F E AT U R E
You can now customize the view of option chain. You can choose which columns to show
and hide in your option chain.
142
WA I T I N G F O R T H E T R E N D TO E M E RG E
Some days you will find a clear short build up on the call side and long buildup on a put side
on different strike price . This is the sign of a trend day.
143
DECODING OPTIONS
MENU
O I S P U RT
144
O I S P U RT - 4 Q U A D R A N T
145
O I S P U RT
A 50 % Increase in OI and 50 % increase in Price – long build-up and 50% reduction in Price and
50% increase in OI that is short build up.
Since none of the conditions are met above it also indicates that it is going to be a side ways day.
146
O P T I O N S O I S P U RT O N A T R E N D D AY
A 50 % Increase in OI and 50 % increase in Price – long build-up and 50% reduction in Price and 50% increase in OI that is short build up.
The boxes indicate the signs of a trend day, long build up on call side and short build up on put side.
147
DECODING OPTIONS
MENU
O I S TAT I S T I C S
148
O I S TAT I S T I C S - M E N U O P T I O N S
149
O I S TAT I S T I C S
OI Stat gives us the info on where the writers have got maximum position. On the call side 33000 strike price has been written aggressively. So
you can not expect the market to be going above this point. Unless and until some massive short covering is happening. And 32000 and 32500 is
going to be on the put side. This is a cumulative data. If you want to see the data today. If you see the OI on the Put side bar becoming smaller it
means market may fall more and more.
150
O I S TAT I S T I C S - N I F T Y
On the call side the OI build up is there. Which means that market will fall down. Put writers are not making any fresh positions it means they
are expecting the markets to fall more and more. The cumulative data also tells you the market bias.
151
O I S TAT S
Upper
Lower
range
range
This can give you the maximum resistance on the call ( 34000) and the Put Side (33000). So trend is going
to be between this range. Either side if the range is broken the shorts need to be covered and it will trigger
a rally.
152
O I S TAT S ( E X A M P L E 2 0 - 0 5 - 2 0 2 1 )
Upper
Lower
range
range
In this data we can see that on the call side there has been massive writing at 34000 and on the Put side
there is writing at 33500 and majorly at 33000. On an expiry day we have to be very careful about the
premium play. The market is supposed to play in between 33000 and 34000 as per this data.
153
DECODING OPTIONS
MENU
OPTIONS PREMIUM
154
OPTIONS PREMIUM –MENU OPTIONS
155
OPTIONS PREMIUM
If more premium is available on the call side I would be more happy to write the call Option. Provided if dow
futures in falling, vix is rising and Asian markets is falling, so in this case we can short the market as it will not
move up in all probability.
156
OPTIONS PREMIUM AND MARKET DIRECTION
Options premium can also give a direction of the market. It is clear that more and more puts are
written at every strike price and hence the market direction will be up
157
O P T I O N S P R E M I U M A N D E X P I RY D AY
On an Expiry day if the call side premium is 40-50 rupees more than put side premium at 33700 . It is not a good sign for a
call buyer in the morning. Imagine a gap down scenario in market it will provide a golden opportunity for the option writers
to eat the premium in the morning.
If the premium is very high as shown its very difficult to catch up this due to time value decay of premium.
158
If you are trying to buy an ATM call as premium is still 133.70 to be zero for sure you and will be loosing so we
must play in Deep ITM of 300-400 points. When premium on one side it is better for a writer.
159
All the deep ITM on the Put side are trading at a discount which means in case the buyer buys the seller
has to sell out 18.50 rupees from his pocket.
160
E X A M P L E O F S H O RT S T R A D D L E
This is the short straddle of 33000 strike price because here the open interest on the call side
was maximum. Don’t go for the short straddle on the trend day. Also choose a strike which has
higher IV
161
DECODING OPTIONS
MENU
TRENDING OI
162
TRENDING OI-CHOOSING STRIKE PRICE
Choose 5-6
strike price
above and 5-6
strike price
below the spot
price.
163
TRENDING OI
A N A LY S I S
• Reduction in Trending OI means the people who had taken
the position are taking off their position as the trend is not in
their favor.
• If OI goes into negative on a particular side it means you can
expect more and more short covering to happen on that side.
164
T R E N D I N G O I A N A LY S I S
If the market is
going higher and
the call prices are
going higher we
don’t want to see
the Call OI
should go higher
compared to Put
OI
If market is going
higher PUT side
OI will go up and
vice versa.
When the trending OI on Nifty does not have significant gap it is not going to be a day of big moves as the gap in call side and put side
OI is just 4 lakhs, If the call side and put side premium is going to be same in the that case it is just a premium erosion day.
165
TRENDING OI
It gives the indication of market direction. NO fresh positions are being created in either directions. The small
green between 11.20 to 11.30 is due to short covering and no new low has been broken.
166
O N T H E T R E N D I N G O I A N A LY S I S
We see a
reduction in OI
in the call side
and build up on
the put side,
which means
market is likely
to go up
On the call side
we saw a short
covering and
long unwinding.
All the positions are cumulative created positions over time on these strike prices.
167
T R E N D I N G O I O N A T R E N D D AY
Notice the increasing gap of Call and Put OI at every time interval going up
168
A N A LY S I S O F O I
The Put side OI is reducing and call side OI is increasing which means more calls are being
writing and more puts are being covered. It indicates a bearish potential move in the market.
169
T R E N D I N G O I A N A LY S I S - N I F T Y
OI is increasing from 55 to 75 as call writers are active and more people are writing call ( so market will be
bearish) in call side and on put side it has come down from 55 to 38 because of the market fall option writers
are covering their position , so market is going to be bearish.
170
T R E N D I N G O I A N A LY S I S - B A N K N I F T Y
We wanted the call side OI to be reducing but call side OI is increasing slightly in this case. Put side OI is
reducing which means there is short covering and the price will trigger a larger rally on the upside.
In this situation every rise is getting sold.
171
T R E N D I N G O I A N A LY S I S
The gap between call and Put side OI has reduced from 24 lakhs to 9 lakhs. It means put writers are
covering their posit. We wanted the call OI to be increasing and put OI to reduce in order to have a clear
emerging trend on bearish side. More reduction on Put side OI indicates covering on the Put side. And
increase in call side OI indicates writing on call side.
172
T R E N D I N G O I – T R E N D I N G D AY P U T S I D E
173
C H E C K I N G T H E T R E N D I N G O I D ATA
Check the trending OI data , if this confirms then there may be one more round of downward move
before punters make their next move.
174
O N C E YO U S E E T H E A B OV E C H A RT C H E C K
T H E T R E N D I N G O I DATA AG A I N
It can be see from the data that in last 15 min there is no fresh low break, which means there is a
consolidation going on.
175
ONCE YOU S EE THE ABOV E C HART C HEC K THE
T R E N D I N G O I DATA AG A I N
At around 12.55 the change in call and Put OI were similar. But towards 13.35 the call side OI increased and
put side decreased which means that the market is ready to go down. There should be a steady growth in
the call side for market to fall but in last 15 min or so the change in call side OI is more or less same which
indicates premium erosion may happen.
176
O N A T R E N D I N G D AY T H E T R E N D I N G O I
DATA LO O K S L I K E T H I S
177
P R E M I U M E R O S I O N A N D D ATA
When you see call and put side data more or less same that is the zone of premium erosion
178
TRENDING OI(EXAMPLE)
The Trending OI on the call side sees huge unwinding that indicates a bullish sign
on the 17th of May 2021.
179
The Trending OI on the call side sees huge unwinding that indicates a bullish sign on the 18th of May 2021.Also
the gap between call and Put OI has increased during the day and the market opened gap down on this day.
180
On 19th of May, Call side and Put side both data is reducing, and there is more positions on the call side, so the
data means there is a bearish inclination, the reduction in OI mean short unwinding as it is Wednesday, one day
to expiry and people don't want to carry over the positions.
181
On 19th of May in Nifty we had call writing positions, but we had large unwinding happening on the put side so
breaching the 15000 levels will be difficult.
182
DECODING OPTIONS
MENU
BIG OI MOVEMENT
183
BIG OI MOVEMENTS
Big OI will get updated only where there is any significant action happens on a particular OI. As you
can see at 10.40AM onwards on the call side there is a massive short built up and also about 1 pm
we have very high short covering on the put side. As you can see on the call side there is short
build up that means calls are being written which means market will fall and its bearish sign.
184
W H AT I S B I G O I A L L A B O U T ?
Big OI is all about some one creating a massive position on either side. If some one is building a position on call side at all strike price
ATM , OTM and ITM it’s a clear sign that market may move down. The shorts on the put side is covering not only ATM but also ITM and
OTM strikes that also proves that the market is getting to go down.
185
C O N F I R M AT I O N O F B I G O I M O V E
We also check the trending OI and see that the call side OI is increasing and also Put side OI should either stay there or reduce.
186
DECODING OPTIONS
MENU
ACTIVE STRIKE OI
187
ACTIVE STRIKE OI
This gives you a meter to indicate whether the market will go higher or lower. If it is trading in the positive side
you can get into the positive momentum if not into a negative momentum. We needed to see the sentiment
meter moving above 50 and then keep on going higher. In the Active strike change in OI data both call and Put
travelling together shows the Sideways movement.
188
ACTIVE STRIKE OI
Active strike OI show higher put side OI vs Call side OI indicating a bullish sign confirmation on the active strike
Sentiment % also on a 60 min time frame.
189
DECODING OPTIONS
MENU
ACTIVE STRIKE IV
190
ACTIVE STRIKE IV
▪ Collated the Active strikes
where the move is
happening and also track the
data on where the buyers
are coming in.
▪ IV has jumped to 42.45 on
the Put side because more
buyers came in. After the
move the IV is coming down
which means the buyers are Premium Erosion zone
exiting now.
▪ Call side IV is getting lower
and the market is getting
lower.
▪ It means buyers are flocking
on the put side.
▪ More the IV more the
buyers less the IV sellers are
making the money.
191
A C T I V E S T R I K E I V- E X A M P L E
192
DECODING OPTIONS
MENU
OPEN AND HIGH
S T R AT E G Y
193
OPEN=HIGH: THE CONCEPT
• Usually some large institutions take

some big positions right in the
market opening. If they need to
deploy say 1000 CR in the market.
They will deploy say 100 Cr in the
direction they think to take the
market, higher or lower,
• This Big money not only buys the

future but also some of the strike
price on the call side where they
know definitely that they will take
the market at this level so they will
buy at this price. They also buy
stock futures and options of the
constituents stocks of the specific
index.
194
• Normally the big money is placing

basket order and they buy at several
strikes at market price itself.
• They are ready to buy at any price
because they know that they are going
to be pushing the price upto the
Open=High Level.
• After the market open if they are
getting the price at which they bought
they will be happy to buy.
• Because they know that for sure they
will be taking futures market higher.
So that they can hit the price at which
they bought it.
195
• So they fill the order right at the

open where they feel the market is
giving them opportunity to buy at
the opening itself.
196
U N D E R S TAT D I N G O P E N = H I G H
See the Yellow box, these Strike opened high but subsequently the price dropped to 508 and 456 respectively. As
long as it does not meet Q 1 and Q 2 Criteria that is the price has not fallen more than 50%.These fallen price is the
accumulation opportunity for the big money as they already bought the same option at 560 in the opening itself. After
they deployed 100 Crores in the opening trade they will deploy another 200 Crores to buy all the options in lesser
price and before the actual move they will deploy the remaining capital at one go to push the price higher. Also the
short seller who were shorting the market at 508 and 456 level they will be forced to cover the position and thus
moving the price more than the opening price of 560 and 540 and beyond.
197
• Look at this trade. The opening price of future was 36402 and the high was also the same.
Its rare that the futures and options open and high matches several times.
• Look at the strike price of 36000 CE it triggered the price of 719 and then went to 673.
• Besides this 5 strike prices were meeting Open = High Criteria.
198
• In this scenario what we need to look at is that if some one would have bought right at the
open thinking that he is going to be taking the market higher imagine if the market is falling
from that level , as long as it is in his control he will definitely go and touch the open price.
• At this time we will also look at considering the fall has happened is there any follow up
happening. Also check if the vix is rising? If the global markets falling? If it is taking the base
at RSI 20?
• when all these parameters are meeting and they are not adding any significant positions to
take the market lower. How will we know?
199
• When they are taking significant position on the call side, the price must have gone down by
50 % with 50 % increase in OI as per short build up conditions and on the other hand we
would have got put prices gaining 50% higher. And we also did not see any significant fall in
the future prices.
• All this will give us additional indication about us achieving our targets.
200
• When they are taking significant position on the call side, the price must have gone down by
50 % with 50 % increase in OI as per short build up conditions and on the other hand we
would have got put prices gaining 50% higher. And we also did not see any significant fall in
the future prices. It went to the low of 36120 and from there it bounced.
• All this will give us additional indication about us achieving our targets.
201
OPEN=HIGH: WHEN SHOULD
YO U TA K E T H E T R A D E ?
• In this case we need to be looking at 36300 CE,why?

• Already the Open=High on 36000 was taken out. And the next index option trading at the
money is 36300.
• We would not be looking at OTM Strikes at this juncture. Why?
• The strike price of OTM 36600 CE Opened at a price of 474.05 but at present its trading at
374 Rupees a gap of 100 Rupees. Which means without pumping additional funds it’s possible
to take the market higher.
202
W H AT I S P RO B A B I L I T Y O F
SUCCESS?
Whenever you see a

probability of 80-90% it has
very high chances of going and
hitting the target.
If a price is trading at 959.8 it
has 80% probability of hitting
1284.05,
And when the price is trading
at 1840.95 it has 90%
probability of hitting the target
of 2026.9
This also has a artificial
intelligence which marks a
red dot has a higher
probability along with the
confirmation of 90 %
hitting the target.
203
OPEN AND
HIGH
STRIKE
SELECTION
A l w a y s c h o o s e A T M
a n d I T M , O T M s t r i k e s
h a v e g o t l o w
p r o b a b i l i t y o f h i t t i n g
t h e t a r g e t .
204
If you have open and high on 4 or
5 strike price matching exact
same price on Open and High
then ITM and ATM strike price
has higher probability of getting
large rewards.
205
S T R I K E P R I C E TO LO O K AT
Suppose the Bank Nifty is

trading at 33800 then look for
33200,
33300,
33400,
33500
33600
33700
33800
33900
34000
Don’t go and look in OTMs as
its probability of hitting the
target is very low.
Open and High must Hit the target by 10.30 am to prevent the time decay loss of premium.
206
OPEN=HIGH: WHEN SHOULD
YO U TA K E T H E T R A D E ?
• But we would be taking the trade at 507 at strike price 36300 CE ( Open = 560) . If the
same price was at 450 we will not take this trade but once the momentum starts it goes and
meets the original open price of 560 again by pumping in more funds. Not only this price
was hit other string prices were also hit and target met.
• We would have pocketed from 507 till 560 and would have exited at 550 itself or trailed it
further.
207
O P E N = H I G H : I M P O RTA N T
POINTS
• Once you are in profit trail it.

• Once the target is achieved in open and high they will go and book the profit. These are the
trades which has been taken by them in the morning and right now they are trading at a
much lower price. Smart money will buy at the present price of 372 ( 36600 CE) and this
will bring their average purchase price lesser than 474 so once they will reach close to 474
to 500 they will go and book the profit.
208
O P E N = H I G H : I M P O RTA N T
POINTS
• There are reasons for it to keep on going higher. Imagine a person who would have shorted
the market at 474 he would try to short it more and if he is not able to push the price lower
he will cover the position.
• Hence the strike price of 36600 which was trading at 372 went high of 545 and after profit
booking it closed at 219.
209
O P E N = H I G H : S U C C E S S R AT E
• Open=High may work 7 out of 10 times. Why it may fail 3 times?

• Imagine one FII brings 1000 CR and other brings 2000 CR, they will not let the price go
higher and higher. Instead they will keep on selling and take the market lower and lower.
210
OPEN=HIGH: DECODING WITH TRENDING OI
In the morning it was sell on rise market. It was based on previous days data. We did not see significant OI
development in a particular direction. We need to see increase OI in a particular side and price going up or
down on that side. In this data after the initial move we saw an increase of OI on the call side.
211
In the morning trade open and high gets cleared first. By 10 am if market was rising we should have seen
the PUT OI increasing . Once it started to consolidate we saw a consolidation on both sides.
Trending OI Data must be analysed after 10.30 after the morning market settles down.
212
It around 11.30 onwards there is a aggressive put side position is being built as shown from the data. No
significant move was expected as the gap between call side and put side data was not significant. Also the IV
Value was lower on the call side than put side so even if the market is going to be bullish the upside is going
to be capped. So don’t be in a hurry to chase it
213
Real confirmation came at around 1.45 pm.
214
On a 5 min time frame it confirmed the

perfect bearish move.
215
O P E N = LOW : FA K E R A L LY EXAMPLE
On this particular day market has already rallied big. In this scenario if some one has pumped in the money in the
morning thinking that this market is going to be falling, he was completely fooled, why ? On this particular day of
11-3-2020, the previous day we had a significant fall and the world market was also falling but on this particular
day the world market was super bullish and the vix was falling from morning so in that scenario don’t expect the
open and low to be achieved on this particular day.
Hence on this day this strike price inspite of having open =low closed at 1262.
DO CHECK THE OTHER CONNECTING DOTS BEFORE TAKING THE OPEN HIGH TRADE. PLAY DEEP IN THE
MONEY OR IN THE MONEY STRIKES NOT IN OTM STRIKES
216
O P E N = LOW
Open and Low is to

be used on the Put
Side.
Triggered time is the
time at which the
target is hit.
Open and Low is for the sellers and Open and High is for the Buyers. If Open and High is
getting hit on the call side then we should see open and low on the Put Side and vice versa.
217
O P E N = LOW
In this example it can be seen that Open and Low has hit at most
the strikes.
218
OPEN=HIGH, EXAMPLE
Open and High is formed at about

9.20 am on 20th of May 2021 on the
strikes as shown on the Put side.
At 34100 Strike price presently

trading at 358 has a high potential
of hitting 418. ( Wait for this price
to reach till 370-380 before taking
plunge and check for probability
and the red dot confirmation.
Market trading at 33870.
Since its on put Side its 300 points
ITM.
Don’t always wait for the target to go and hit , you can exit early also if you are in good profit.
219
OPEN=HIGH, EXAMPLE
Now 33600 has gone into 90%

probability with a red dot, present
price of Rs 118, target of 145.9
Don’t always wait for the target to go and hit , you can exit early also if you are in good profit.
220
OPEN=HIGH, ON BOTH C ALL AND
P U T S I D E I N T H E S A M E D AY
Some days you will see the Open and High on the Put side and then you will also see it
on the call side, Once they fulfil one side they quickly move to the other side for
fulfilment as well.
221
O P E N = H I G H , W H E N T O S TAY AWAY ?
If you notice a 50% increase in a call side and 40 % decrease of price on the put side , ( since the Open=High
was activated on the put side. As long as its 20-30% decrease in price on put side its ok,
While taking the trade on this day it was also checked that the global parameters were not supporting an
upwards move.
222
OPEN=HIGH IMPORTANT POINTS
Open and High on an expiry day needed
to hit by 10 am
Open and High works well when other

parameters in place
Yo u s h o u l d n o t e n t e r t h e t r a d e o n c e
the target is it
223
OPTION CHAIN AND OPEN AND HIGH
In the option chain itself the Open and High which are not hit yet are highlighted in green box
224
DECODING OPTIONS
MENU
O I E X P I RY S T R AT E G Y
225
E X P I RY D AY S T R A R E G Y
We will choose strike price 500 points up and down from

spot on bank nifty. Lets see the example of one strike price We will buy a put because the market has
of 32500 CE and PE and analyse. It says that the price of
32500 CE has fallen from Rs 817.25 to Rs 500.70 to the low
rallied from a level of 185 to 500 and the OI
of 254, where the buying came in and it closed at 512.35 has come down from 6.66 to 5.53
OI Jumped from 1.83 lakhs to 7.76 lakhs meaning that at the
lower level buying was emerging. It shows short built up but
buying was emerging at lower level.
Similarly next day from 512 it opened at 690, went high at
758 and now trading at 283.
The latest OI now has come to 7.52 from 7.76 Based on
this data tomorrow we will do sell on rise on the call side as
a call writer and I will buy a Put.
226
O I - E X P I RY S T R AT E G Y
On the expiry day we need to follow the Strike price based on this scenarios. Based on the data we can
either buy a call of 34200 or sell a put of 34200 because the price has moved ahead between 28th to
29th of April on the call side at strike price of 34300 and 34200.
OI Expiry strategy can be used in all days however it works better on expiry day and a day before.
227
D ATA I N T E R P R E TAT I O N A N D
TA K I N G P O S I T I O N S
From the OI Expiry strategy it is clear the market is there for an up move and once the data proves that,
use the chart as shown in the next slide to take positions.
With this data it is clear that before profit booking there may be another round up move.
228
E X P I RY D AY D ATA C H E C K
On an expiry day on 60 min time frame after the initial long build up we see long unwinding due to positions
being shifted to next week and booking for this week.
229
Go and check the next series data to understand where the position is being taken by the big money. In this
data the positional setup is still short build up.
230
In the next series on the shorter time frame there is a long build up but don’t get fooled you need to see
the over all texture in the trending OI Feature.
231
C H E C K I N G T H E DATA C O R R E S P O N D I N G TO
A M OV E O N C H A RT
2 N D C H E C K O P T I O N A N A LY S I S AT D I F F.
STRIKE PRICES
At Strike price of 34000 also there is a long build up at call side and short build up
at put side.
232
E X P I RY D AY S T R I K E P R I C E T H AT I S
H E A D I N G F O R Z E RO L E V E L
At 33500 on Bank Nifty there is a call and put but being written aggressively giving us the
clue that it may end up in zero.
233
At 33600 also on Bank Nifty there is a call and put but being written aggressively giving
us the clue that it may end up in zero.
234
At 33800 indicates huge call writing and they are going to be defending this level within
30-40 points.
235
T I P S F O R H E RO O R Z E RO T R A D E
At 33400 strike price similar pattern is emerging and if the price is coming around 10 or 20
rupees we can go and give it a try here. But in order to do that we need to wait till 2.45 pm.
Hero or zero normally happens at around 3 pm.
236
▪ Hero or zero normally happens at around 3 pm.

▪ On the monthly expiry day don’t bother about chart because we are taking intraday positions only but the big money has positions for a longer time .
▪ They will all be unwinding between 2.30 to 3.30 pm.
▪ Whatever the candles show follow that. At around 2.30 PM at the strike price 33800 there is long build up is happening on the call side and short build up on the put side. So
the hero or zero will happen on the call side and upside.
▪ On hero or zero deploy just 10 % of your profit. The target buy price for buying a for the strike of 33800 should not be more than 20 rupees. Either long build-up or short
covering need to be happening on the call side.
▪ If the direction changes and say you get a long unwinding on the call side and a short covering on the put side with a big volume you need to change your direction as well.
237
▪ At 33700 strike price we see short build up on call side and long build up on put side.
238
Market is trading at 33661 at 2.15 pm on 29/04/2021. Go and look at 33600 on 60 min time frame in options Analysis in OI Pulse. Both the sides only shorts are
built which is controlling and brining down the premium. It’s a perfect short Straddle day. Now we need to know where they are creating maximum open interest
in terms of writing it. Which is on the call side. So there is every possibility is that this market can fall . The only catch point is that we need to see how they are
going to positioning themselves at 2.45 pm. You are getting to see a new day low break and it keeps on going lower and lower on the call side, and you are able
to see a short covering and a long build up happening on the put side OI then go and check 33500 or 33400 strike price and see whether similar pattern is
emerging.
239
E X P I RY S P E C I A L S T R AT E G Y- D O I T
M O N D AY, T U E S D AY, W E D N E S D AY A N D
T H U R S D AY
240
T H U R S D AY
We have chosen strike price from 32000 to

33500
241
T H U R S D AY
▪ This gives us position in

these strike prices on where
the direction is going to be
for a particular strike price
and we can take trades based
on this.
▪ Based on this data we can

take our positions on expiry
and above days.
242
T H U R S D AY
If you analyse the 33000 CE data you will

realise that long positions are being built on
the call side
243
T H U R S D AY
If you analyse the 33000 PE data you

will realise that on 27th April there is
a 123.27% increase in OI but almost
44 percent reduction in price , the
premium for 33000 PE was 883 on
26th but on 28th it is 257.15 a huge
drop in Premium.
It is short built up and sellers are
making money. But we will not sell
ATM
At this time Bank nifty was trading at 33000
244
T H U R S D AY
We would sell OTM and by doing so

we will be able to get lots of
premium.
At this time Bank nifty was trading at 33000
245
E X P I RY D AY O I A N A LY S I S
We have taken a wide range of data of 1500 points range in Bank nifty ranging from
33000-34500 as the market moves in wide range these days we want to see where the
big fish has made there positions.
246
At 34500 strike price Previous close from 5.30 to 16.80 with a high of 27.40, 216% increase
in price and 44.77 % increase in Open Interest.
A bullish Sign.
247
At 34400 we don’t have massive volume created on the put side but there has been a huge
OI jump on the call side.
When you see the OTM strikes being bought aggressively it’s a bullish sign,
Once you see short covering happening at in the money and at the Money and
building up long positions on the OTM Strikes, the market is expected to move
further and further.
248
At 34300 , 34400, 34500, all meet our requirement of 50% increase in OI and Price.
Look at the jump it closed from 7 rupees to 34.90 rupees almost a jump of 27 rupees.
At the same time we have not seen major short build up happening on put side at this
strike price , however there is a mild short build up happening at higher level.
249
At 34000 CE the jump in price is 574 % and a short covering happening. Once 34000 is done they have build up a
position at 34100 with OI jumping from 83,650 to 26,5750 a 217% jump in OI and 515% increase in price.
At the same time on 34000 PE there is a short Build up. With 68% drop and 83 % increased in OI. Which means Put
is being written aggressively.
250
Now we need to see the data of 34000 CE to know what is happening there. ( option analysis of that particular
strike price) In the last 15 min we see big unwinding happening. When the unwinding is happening you also see
short covering happening.
From the above data we have seen long build up on call side and short build up on put side so we can be bullish view
in this market.
251
WHEN OPEN INTEREST IS INCREASING IN
BOTH C ALL AND PUT
It is clear from the data that open interest is being added on both call and the put in the trending OI. In
this case we will go and check the ITM and ATM Strike prices. ( 33676 spot) see next slide.
252
A N A LY S I S N G W I T H A L L T H AT
W E H A V E L E A R N T S O FA R
253
FIGHT BETWEEN BULL AND BEAR
In this case from 9.15 to 9.15 at 33700 there was a long build up on call side and short build up on put side
At 9.30 to 10.30 am there is short build up on call side and short covering on Put side and so on. You can see the
position at this strike price has been continuously changing. It is a game which is being played on both the side.
254
WHEN OPEN INTEREST IS INCREASING IN BOTH
CALL AND PUT
On the OTM Strike of

34000 there is a short build
up.
We need to analyse the
reason for the candle
formation and the detailed
analysis like this helps.
255
S E L L E R S O N B OT H S I D E
Lets check the round strike of 34000, we can see that 8,32,550 quantity was built up in the opening. Price almost went up from 139 to 456
and now trading at 379.05 on the put side.
On the call side , the position has been built after the opening move. In this case when there are sellers on both the sides no one wants to
take the market higher or lower. When ever you see sellers on both the sides its very difficult for retailers unless and until one side the
seller covers their position.
256
When we see the candle like this reaching V wap, without Volume, we need to
check for what is causing this move?
257
C H E C K I N G T H E DATA CORRESPONDING TO A
M OV E O N C H A RT
1 ST C H E C K T R E N D I N G O I DATA
68,56,000 to 48,02,825 is the gap between OI for Call and Put ( -20,93,175), we need
to now check from 64,43,575 to 68,96,000 on call side is due to short or a long.
258
2 ND C H E C K O P T I O N A N A LY S I S
At Strike price of 33900 there is a long build up at call side and short build up at
put side. Which indicates a possible upmove of this strike price.
259
D I V E R G E N C E I N D ATA
Between 9.40 to 9.50 big money has made long position on the call side and short position on the put
side. However on the other hand (next slide)
260
D I V E R G E N C E I N D ATA
But on the trending OI there are no fresh positions on the call side and what ever buying is happening
from 64 lakhs to 69 lakhs on the call side is because there is some strong element coming and
supporting the market at the lower end.
261
W H E N T O A V O I D T H E M A R K E T-
T H E B I G B OY ’ S G A M E
In the Trending OI data

see the OI increase in
both call and put side.
262
T H E T R A P G A M E - E X P I RY D AY
They are moving higher but without any Volume. They are trying to trap the
people who would have entered late.
Imagine you are a put buyer thinking the fall has started and you would have bought 34100 PE at
505.95 now trading at 423.10 and same with 33700 PE whose price was 245 now trading at 138.75
On a day like this be careful as they are trying to eat your premiums only
263
B R E A K I N G D AY S L O W A N D B U L L T R A P
Bull Trap
Days Low
Market can fall lower and lower if the days low is broken
264
DECODING OPTIONS
MENU
I N T E RVA L W I S E O I
265
I N T E RVA L W I S E O I D ATA
• It tells us the
developments of
different quadrants at
different strike price at
different time interval
• Green colour is long
build up,
• Red Short build up
• Yellow Long unwinding
and blue is short
covering
266
DECODING OPTIONS
MENU
M U LT I P L E O I C H A RT
267
Choose multiple Call and or Put of a given strike price and it gets plotted
against the Future OI of the same Index or option.
268
After choosing 38900 CE and PE we can see that the OI of Future at 2.40 pm was 38,905,85 the one for
38900 CE was 794,950 and that of PE is 180,125, on 12th of Nov 2021 Nov 18th Expiry,
You can see a drop in Call side OI which is a bullish sign, The same reflects on the BN chart of the same day
in next slide
269
270
D E C O D I N G S T R AT E G I E S
MENU
S T R A D D L E C H A RT
271
Imagine a market is trading at around 33700 , we should short both call and the Put at around 9.20 am , the price
sum of premium was around 304.95 and the Vwap was at 354. The sum of premium never crossed VWAP.
272
At around 12.15 pm the same price is now trading at 221.80 . This trade is to be carried until if there is a spike
on any one side and VWAP is broken with volume, then you should exit that direction.
VWAP works like a stop loss in this case.
273
Imagine a market is trading at around 3900 , we should short both call and the Put at around 9.20 am. In this case
the price sum of premium at around 11.30 was 804.40 and the Vwap was at 803, which with time kept coming
below VWAP as time passed by. Our Stop loss would be above V WAP.
274
MENU
S T R A N G L E C H A RT
275
Select a call Strike price, Select a put Strike price, select a time frame.
276
In this case if would have bought a strangle combined premium is 350.25 and v wap 375.61. The combined
premium never crossed the VWAP. By the end of the day it ended at 757.
277
278
VIX AND
PRICE
279
VIX AND PRICE
Market
going
Higher vix Market
cooling going
down Lower vix
Going
Higher
More the cross over in a vertical manner more the market will fall or go up depending on the
direction of the cross over.
280
VIX AND PRICE
281
VIX AND PRICE
282
MENU
MORNING TRADE
STOP LOSS RULE, ENTRY RULE IS SAME FOR MORNING TRADE AND 3.20 STRATEGY
283
MORNING TRADE AND 3.20
S T R A T E G Y- W H E R E T O F I N D I T
284
MORNING TRADE
If the price of the strike price comes in the

price range then take the trade or else you
can get trapped and the fall can be very steep
Don’t hold your trade beyond 10-10.30 am. Deploy only 10 of your profits not capital. Trail your profits.
285
MENU
3 . 2 0 S T R AT E G Y
286
O N C E YO U C L I C K O N 3 . 2 0
S T R AT E G Y T H I S I S W H AT YO U S E E
287
3 . 2 0 S T R AT E G Y- N I F T Y S I G N A L
288
TA K E 3 . 2 0
T R A D E O N LY
WITH 10% OF
YO U R D AY S
P RO F I T A N D
N O T C A P I TA L
AS IT’S A
OVERNIGHT
TRADE
289
EXIT SIGNAL
• Exit signal for this strategy is at 50% of your entry price. In the following example the
signal call at 40200 strike @ 480 Rupees
Click on chart to see the chart of the strike price
290
EXIT SIGNAL
• Exit signal for this strategy is at 50% of your entry price. What does this mean?
• Though you can see that the signal has generated more than 300& return but aim for a consistent 5% return , its more than enough
Best is to Keep the low of the opening candle as stop loss

Highest
Tick by of the
tick OI day,
line
Signal Line
Exit
Signal@240 ,
Stop loss Line 50% of entry
price 580
291
A N OT H E R E X A M P L E - T RY TO R E A D T H E C H A RT
292
A N OT H E R E X A M P L E - T RY TO R E A D T H E C H A RT
293
GET OUT OF THIS TRADE BY 10
TO 1 0 . 1 5 A M
• These are all scalping signals.
• Don’t try to hold it.
• It’s aimed at office goers,
• You will get the results by 9.30 to 9.35 itself.
• You can exit the trade by then and at the
most trail till 10 to 10.15 am but not advised
to hold beyond that.
• If they are not able to hit the target y 10-
10.15 they are never going to be coming back
better to exit.
If the price goes lower than entry price and not reached stop loss, don’t
try to average your position.
294
A N OT H E R E X A M P L E
It went to a low of 330 , did

not hit out stop loss, and
later went and hit our target
of 549
295
ANOTHER EXAMPLE-PRICE FIRST GOES LOW AND
BOUNCES WITHOUT HITTING STOP LOSS
296
E X A M P L E O F S TO P LO S S B E I N G H I T
297
PRE MARKET
D ATA
298
PRE MARKET OPEN-
AVA I L A B L E AT 9 . 0 8 A M
299
DECODING FII/DII
ACTIVITY MENU
CAPITAL MARKET
300
C A P I TA L M A R K E T D ATA
It tells exactly where the cash market volumes are. In this case the FII’s are selling and the DII’s are supporting.
301
C A P I TA L M A R K E T D ATA
302
D E R I V I T I V E M A R K E T D ATA
Towards the end they have sold some Index futures and bought some Index Options.
They know how to adjust their positions.
303
DECODING FII/DII ACTIVITY
MENU
FII DERIVATIVE STATS
304
It can be seen from the right most bar that FII’s have bought Index Futures, Index Options, Stock
Futures and have sold stock options. Same is confirmed in the next slide
305
306
D E R I V I T I V E M A R K E T D ATA
In this table we can see that they have sold the futures bought the index options
( bought is green , sold is red)
307
U N D E R S TA N D I N G T H E N E X T M O V E
U S I N G F I I D I I DATA
In the last 4 days there has been big buying in index options and stock futures Nifty 50) which will push the
price. On 28th they have sold it at a higher range that this is the idea to make money.
308
DECODING FII/DII ACTIVITY
MENU
PARTICIPANT WISE OI
309
PA RT I C I PA N T W I S E O I D ATA
Trend of different participants like FII, PRO, DII and Client can be known from the last
column in this table.
310
M U LT I P L E W I N D O W
• CHOOSE YOUR 4 FAVOURATE MENU FROM THE

DROP DOWN MENU UNDER ONE WINDOW FOR
EASY DECISION MAKING IN THE MARKET HOURS
311
C U S TO M I S A B L E M U LT I P L E
WINDOW
312
R I S K C A L C U L AT O R
Suppose you have 5 lakhs capital the maximum you can deploy in any trade is 1.5 lakhs. Not more than 30% in a single
trade. Choose your risk Appetite. Normal day 10 % and expiry day upto 30%,Select instrument, expiry date and strike
price. Choose CE or PE, It gives you the higher range or pyramiding of buying. It gives the number of lots, stop loss
and target price automatically.
313
314

How To Be A Successful Option Salper With OI Pulse 14th Nov

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How To Be A Successful Option Salper With OI Pulse 14th Nov

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HOW TO BE A

Revised on 14th Nov 2021 1

• Dow 30 futures Chart Settings:

• Hang Seng is an emerging market and does

• Market moving Higher and VIX cooling down -Bullish

• Market moving higher and VIX Rising -Bearish

• Market in sideways & VIX is erratic don’t consider vix as a factor.

• Open interest is the position created in the future

On a Gap up or Gap down day avoid this formula till 10.30 am

We will understand all this in details when we study OI Pulse.

• It’s the sellers who create the OI in the market. If

• It’s the fear of the option sellers.

• Each and every stock will have an IV.

40 40 Stay away from markets or play short Straddle

Higher the IV Premium is high, Lower the IV premium is low

• On Nifty the IV is 20.78 and on

• On the higher IV side that is Put

• On the other hand call side IV is only 20.89

• Premium erosion on the high IV side will be

• In this example we can see that at

• You can also see that in deep in the

• Inspite the market moving 800 points

• When the IV level is same on the call

▪ When ever there is a large gap between V wap and

Two Candle theory and

The entry point in the trade

• Take the trade

▪ Once WMA is broken the next level of support is

▪ Once the super trend is broken the next level of

▪ Once V WAP is broken market can go lower and

A Super trend V Wap cross over like

A Super trend V Wap cross over like this backed up by

If V Wap and Super trend

If V Wap and Super trend

Super trend crossing V WAP is a

• The fall on the charts does not

• Buy level is the V wap or super

• Trail the profit with stop loss.

• Deployed capital is not more than

• Candle between super trend and V wap

Since the volumes are not there in the falling

Average the position only when market can

If the price comes to super trend,

When markets are rising the volume

The entry point in the trade

When market is going up its going up with a low

If you see bank nifty in this pattern

• If the DOW is falling when the candle of

• Besides the indicators

Towards the fag end there is a

• But with OI change 8,21,400 the

• This is not a good news. This

Any stock that is operator driven we should stay away.

Whenever a stock has broken 8 days high or

Either there is a long position or there is a short build up.

No clear Signal-Are of Premium Erosion big time

Lets look at the in the

• Usually some large institutions take

• This Big money not only buys the

• Normally the big money is placing

• So they fill the order right at the

• In this case we need to be looking at 36300 CE,why?

Whenever you see a