Analyze Option Chain: Understanding Terminologies and Identifying Support and Resistance Levels

🔍Understand option chain terminologies like call options, put options, strike price, and expiry date.

📈Identify support and resistance levels based on open interest and premium changes.

📊Give more weight to the views of call buyers or put sellers based on price movement.

💡Currently, 15,800 is a strong support level for call options, and 15,500 is a strong support level for put options.

🔄Continuously monitor the option chain for real-time updates and potential changes in support and resistance levels.

What is the difference between call options and put options?

—Call options give the buyer the right to buy the underlying asset, while put options give the buyer the right to sell the underlying asset.

Why are call buyers bullish and put sellers bearish?

—Call buyers believe that the market will go up, while put sellers believe that the market will go down.

How can I calculate the premium in an option chain?

—The premium is the price of the underlying asset minus the strike price.

Why is open interest important in option chain analysis?

—Open interest reflects the number of option contracts that have been created but not yet closed, indicating market interest and liquidity.

Can support and resistance levels change in the option chain?

—Yes, support and resistance levels can change based on real-time updates in the option chain.

00:00Welcome to a video about analyzing option chains and identifying support and resistance levels.

09:45Open interest is the number of option contracts that have been created but not yet closed.

13:20Premium changes reflect the movement of the underlying asset's price.

14:50Currently, 15,800 is a strong support level for call options, while 15,500 is a strong support level for put options.

16:10Continuously monitor the option chain for real-time updates and potential changes in support and resistance levels.