Nifty Option IV - few Observations - 7 Jun 2018 EOD

Nifty Option OI & IV data analysis 07 Jun 2018 

* Very important observation that PUT IV's are almost more than double than the CALL IV

* Option Support & Resistance range is 10600 - 11000 CMP 10768, ATM 10750

* PUT Options - 10600 PE is having open interest of 43 Lacs & 2nd Highest OI writing is observed in 10200 PE which is 34 Lacs

* CALL Options - 11000 CE is having nearly 40 Lacs OI & 2nd Highest OI writing is near 10800CE 

What it indicate??
Current option boundaries is 10600 - 11000 
Difference 400 
Nifty Tested 10800 yesterday
Max Upside potential might 200 points 
Max Downside potential might 200 points

2nd Possible Option Boundaries shows 10200 - 10800
Difference 600
Nifty Tested 10800 yesterday
Max Upside potential might be 0 points 
Max Downside potential might be 600 points

Who will impacted and how?

If Nifty Goes up from current level then,

As per OI -  
Upside Price Possibility around 0 -200 points

As per IV - 
CALL IV is already LOW, there will be room for increase in IV 
            
If Nifty moves up with CALL IV increase - 
Helps CALL Option buyers but Scope is limited as max price upside possibility 0- 200 level and hence for CALL premium is capped on upside  



If nifty Goes down from current level then,

As per OI - 
Downside Price Possibility around 200 - 600 points

As per IV - 
CALL IV is already LOW there will be room for increase in  IV

If Nifty moves down with CALL IV increase - 
Helps PUT Option Buyers its possibility is more considering NIFTY Price fall possibility opens for 200 -600 points     

Ultimately in simple language, 

If Nifty moves High - Low Benefits to Call Buyer and PUT Writers 

If Nifty moves Down - High Benefits for PUT Buyer and CALL Writers

Now think which bus you need to catch!!!