#Thread

Index Option & Open Interest Hacks that& #39;ll Help you in Actual Trading https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen">

1) Rise in OI + Fall in Premium.

- Most Common in ATM & All OTMs.
- Shows strong Presence of writers
- If you& #39;re a Option Buyer, this is a Scalp and run Scenario, Or You& #39;ll get Trapped in Decay.

2) Fall in OI + Rise in Premium

- Happens at ITM and Pressured ATM Options.
- Shows Panic in Writers
- Best Case scenario for Option Buyer
- Momentum is Stronger as the Move is fueled by Triggered Cluster of SLs.
- Most Common on Expiry Days.

The Rest 2 Scenarios Don& #39;t happen much Often in Index Options.

3) Rise in OI + Rise in Premium
- This Theoretically means Long OI Buildup which is Rare in Options Bcz Punters are more interested in Selling Premium than Buying it.
-Usually it can be a Hedging Against Sold premium

4) Fall in OI + Fall in Premium
- Shows Unwinding of Positions. These Can be Both Shorts or longs liquidated.
- You& #39;ll Notice it Mainly after 3 PM as Intraday Positions start to Unwind.
- Practically, No use For Option Buyers.

Conclusively, Some Important Points to Remember,

If You& #39;re an Option Buyer, Best Case Scenario,
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Fall in OI + Rise in Premium.

Bcz, Here The Edge is Bent Into Buyers Favor, as the Panic in Writers Fuels the Momentum. Study n Practice such setups.

Cheers..!! https://abs.twimg.com/emoji/v2/... draggable="false" alt="✌🏻" title="Siegeshand (heller Hautton)" aria-label="Emoji: Siegeshand (heller Hautton)">https://abs.twimg.com/emoji/v2/... draggable="false" alt="✌🏻" title="Siegeshand (heller Hautton)" aria-label="Emoji: Siegeshand (heller Hautton)">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🥂" title="Anstoßende Gläser" aria-label="Emoji: Anstoßende Gläser">