How can I use an option chain to identify market sentiment?

An option chain is a powerful tool for analysing market sentiment. It tracks key components such as Open Interest (OI), Put-Call Ratio (PCR), Implied Volatility (IV), and Last Traded Price (LTP). With Share India’s up-to-date option chain, traders can interpret these elements to identify market sentiment and refine their strategies.

Key Indicators & Their Market Sentiment Signals:

Open Interest (OI) & OI Change

• Rising OI in Call options indicates a bullish sentiment.
• Rising OI in Put options signals a bearish sentiment.

Put-Call Ratio (PCR)

• PCR > 1 suggests more Put buying, indicating bearish sentiment.
• PCR < 1 suggests more Call buying, indicating bullish sentiment.

Implied Volatility (IV)

• High IV suggests the market expects strong price movements.
• Low IV indicates market stability and lower uncertainty.

LTP & LTP Change

• Increasing LTP in Call options suggests bullish momentum.
• Increasing LTP in Put options suggests bearish momentum.

With Share India’s real-time Option Chain, traders can monitor these indicators and adjust their trading strategies based on market trends.

How to Access Option Chain on Share India

On the Web Portal:

Step 1: Log in to your Share India account and select the stock from your watchlist for which you want to check the option chain.

Step 2: Click on the ‘Options Chain’ section located in the top menu, right beside the ‘Charts’ section.

Step 3: Here, you will find the option chain, displaying real-time data, including strike prices, volume traded, LTP, open interest, implied volatility, etc.

On the App:

Step 1: Open the App and tap on the ‘Watchlist’ section. Tap on the symbol for which you want to check the option chain.

Step 2: Tap on the ‘View Option Chain’ button to access the full option chain data. You can also tap on ‘LTP’ (Last Traded Price) or ‘OI’ (Open Interest) based on your analysis requirements.

If you face any issues or need any support while using the platform, you can contact the Share India support team via email at [email protected] or by phone at 1800 203 0303.