Disclaimer: This content is for educational purposes only, based on data as of 1:15 PM IST on March 20, 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 |
|---|---|---|---|---|---|---|
| BHARTIARTL | 1696.05 | 3.62% | -6731 | 2615 | Short Covering | Long Buildup |
| TITAN | 3182.5 | 3.47% | 759 | 2933 | Long Buildup | Long Buildup |
| INFY | 1618 | 1.98% | -3009 | 359 | Short Covering | Long Buildup |
| M&M | 2831.00 | 1.50% | -1153 | -542 | Short Covering | Short Covering |
| WIPRO | 269.25 | 1.30% | 666 | -196 | Long Buildup | Short Covering |
| TCS | 3566.25 | 1.95% | -1587 | -90 | Short Covering | Short Covering |
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 take: Widespread Short Covering (e.g., BHARTIARTL, INFY) with price gains signals a rally—watch for follow-through!
Spotlight on high-activity options
These options show unusual trading volume relative to OI, pointing to potential big moves.
| SYMBOL | Contract | Volume/OI Ratio | Explanation | VOLUME | OI | IV |
|---|---|---|---|---|---|---|
| TITAN | TITAN 3100 CE 27 Mar 2025 | 10.58 | Long Buildup | 14193 | 1341 | 19.62 |
| TITAN | TITAN 3150 PE 27 Mar 2025 | 6.14 | Long Buildup | 8742 | 1423 | 23.94 |
| BHARTIARTL | BHARTIARTL 1660 CE 27 Mar 2025 | 6.21 | Long Buildup | 20830 | 3354 | 15.3 |
| BHARTIARTL | BHARTIARTL 1660 PE 27 Mar 2025 | 3.84 | Long Buildup | 9468 | 2464 | 20.79 |
| INFY | INFY 1620 CE 27 Mar 2025 | 6.02 | Long Buildup | 22898 | 3803 | 24.15 |
| INFY | INFY 1620 PE 27 Mar 2025 | 4.75 | Long Buildup | 6836 | 1440 | 23.15 |
| M&M | M&M 2850 CE 27 Mar 2025 | 5.73 | Long Buildup | 12216 | 2132 | 28.22 |
| M&M | M&M 2800 PE 27 Mar 2025 | 4.98 | Long Buildup | 8821 | 1772 | 31.17 |
| TCS | TCS 3550 CE 27 Mar 2025 | 5.43 | Long Buildup | 20387 | 3754 | 19.12 |
| TCS | TCS 3550 PE 27 Mar 2025 | 4.02 | Long Buildup | 9061 | 2254 | 22.87 |
| WIPRO | WIPRO 275 CE 27 Mar 2025 | 5.11 | Long Buildup | 8591 | 1681 | 26.92 |
How to understand Volume/OI Ratio
- What It Is: The Volume/OI Ratio compares today’s trading volume to existing OI. A high ratio means lots of new trades relative to open positions.
- What It Suggests:
- Above 2: Notable activity, possibly signaling interest in that strike as support/resistance.
- Above 5: Unusual activity, often tied to big expectations or event (e.g., TITAN’s 10.58 at 3100 CE).
- Low Ratio (Below 1): Less trading than OI, suggesting positions are being held or closed rather than new activity.
Why it matters: Ratios like 10.58 or 6.21 scream action—potential breakout zones!
Final Thoughts
F&O data is your radar—OI shifts reveal trader moves, and high Volume/OI Ratios (like TITAN’s 10.58) spotlight unusual action. Telecom and IT are rallying, with consumer goods joining the party. Pair these signals with charts to catch the wave!
Happy trading—catch you next time!
Disclaimer: This content is for educational purposes only, based on data as of 1:15 PM IST on March 20, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.