Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on March 19, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.
Welcome to today’s F&O Insights newsletter! Whether you’re new to trading or building your skills, this newsletter breaks down Futures & Options (F&O) data to help you understand market sentiment.
Let’s dive in and make sense of the numbers!
Understanding Stock Activity Through OI Changes
First, let’s look at how traders are positioning themselves in select stocks.
| Underlying | Price | Change | Call OI Chg | Put OI Chg | Call Explanation | Put Explanation |
|---|---|---|---|---|---|---|
| BAJFINANCE | 8747 | 0.75% | 1028 | 4474 | Long Buildup | Long Buildup |
| ICICIBANK | 1315 | 0.40% | 399 | -23 | Long Buildup | Short Covering |
| TCS | 3486 | -1.89% | 9445 | 1685 | Short Buildup | Short Buildup |
| ULTRACEMCO | 10872.00 | 1.61% | -1374 | 907 | Short Covering | Long Buildup |
| KOTAKBANK | 2021.00 | -0.66% | -738 | -92 | Long Unwinding | Long Unwinding |
What Do These Terms Mean?
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Long Buildup: OI increases, often accompanied by a price move in the expected direction—up for calls (bullish) or down for puts (bearish). This indicates that traders are actively purchasing options, anticipating movement in that direction.
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Short Buildup: OI increases, but the price moves against the option buyers—down for calls (bearish) or up for puts (bullish). It often means traders are selling (writing) options.
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Short Covering: OI decreases, typically with a price rise (for calls) or fall (for puts). Short sellers are closing positions by buying back options, adding fuel to the price move.
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Long Unwinding: OI decreases, often with a price drop (for calls) or rise (for puts). Long holders are selling their options, signaling fading confidence.
**Quick tip: Long Buildup with high Put OI (e.g., BAJFINANCE’s 4474) can mean hedging alongside bullishness—watch closely!
Spotlight on high-activity options
These options show unusual trading volume relative to OI, hinting at big moves on the horizon.
| SYMBOL | Contract | Volume/OI Ratio | Explanation | VOLUME | OI | IV |
|---|---|---|---|---|---|---|
| BAJFINANCE | BAJFINANCE 8700 CE 27 Mar 2025 | 8.12 | Long Buildup | 13009 | 1603 | 25.41 |
| BAJFINANCE | BAJFINANCE 8800 PE 27 Mar 2025 | 6.97 | Long Buildup | 9078 | 1302 | 28.36 |
| ICICIBANK | ICICIBANK 1310 CE 27 Mar 2025 | 5.37 | Long Buildup | 7656 | 1425 | 16.51 |
| TCS | TCS 3450 PE 27 Mar 2025 | 4.75 | Long Buildup | 10345 | 2176 | 23.17 |
| ICICIBANK | ICICIBANK 1310 PE 27 Mar 2025 | 4.69 | Long Buildup | 5585 | 1192 | 20.16 |
| ULTRACEMCO | ULTRACEMCO 10800 CE 27 Mar 2025 | 4.58 | Long Buildup | 5516 | 1205 | 20.39 |
| KOTAKBANK | KOTAKBANK 2040 PE 27 Mar 2025 | 4.55 | Long Buildup | 5239 | 1152 | 19.28 |
| KOTAKBANK | KOTAKBANK 2040 CE 27 Mar 2025 | 3.71 | Long Buildup | 8625 | 2323 | 17.14 |
| ULTRACEMCO | ULTRACEMCO 10700 CE 27 Mar 2025 | 3.32 | Long Buildup | 3497 | 1054 | 19.8 |
| TCS | TCS 3500 PE 27 Mar 2025 | 3.21 | Long Buildup | 12322 | 3839 | 22.65 |
How to Understand Volume/OI Ratio
- What It Is: Compares today’s trading volume to existing OI. A high ratio signals fresh action.
- What It Suggests:
- Above 2: Notable interest—traders see this strike as key.
- Above 5: Unusual activity, often tied to big expectations (e.g., BAJFINANCE’s 8.12 at 8700 CE).
- Below 1: Quiet—positions are being held or closed.
- Why It Matters: High ratios like 8.12 or 6.97 flag hot zones—potential breakout or breakdown ahead!
Final Thoughts
F&O data lights the way—OI shifts show trader intent, and high Volume/OI Ratios (like BAJFINANCE’s 8.12) flag unusual action. Finance is flexing, TCS is slipping, and big moves are brewing. Pair these clues with charts to stay ahead!
Happy trading—catch you next time!
Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on March 19, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.