Mastering Open Interest and Option Chain Analysis for Canara Bank

In the world of stock trading, understanding the dynamics of Open Interest and conducting a comprehensive Option Chain Analysis can be the key to successful Intraday and Swing trading strategies.

In this blog post, we delve into a detailed analysis of CanBk, focusing on Open Interest, changes in Open Interest, and identifying essential trend cycles.

CanBk Option Insights:

On February 7, 2020, CanBk closed the trading day at 189.1. Notably, the highest call open interest was observed at the 200 strike price, while the highest put open interest was centered at the 190 strike. Additionally, some unwinding of positions was seen on the call side, particularly at the 185 strike. The previous trading day featured significant put writing at the 175 strike, along with robust call writing at the 200 strike.

CanBk Option Chain

Trading Range Of CanBk

To determine CanBk's trading range, we identified the rows with the highest call open interest and put open interest in CanBk's Option Chain. The data pointed to a trading range between the 190 and 200 levels.

• Highest call open interest: 200
• Highest put open interest: 190
• Pivot strike: 190

In this context, the highest call level acts as a formidable resistance, while the highest put level serves as strong support for CanBk's price movement.

Trend Cycles:

CanBk is currently in a prolonged bullish phase, characterized as Long-Long Cycles. This bullish trend is an essential factor to consider in your trading decisions. Notably, the 190 level in the Option Chain holds significant importance. If CanBk maintains its position above 190 for a few minutes, it may trigger aggressive short covering, potentially propelling CanBk's price towards the 200 level.

CanBk Trend Cycles

Conclusion:

By incorporating Open Interest and Option Chain Analysis into your trading strategy, you can gain a deeper understanding of market trends and make more informed trading decisions. CanBk is just one example of how these analytical tools can provide valuable insights for traders. Remember, knowledge is power, and staying informed is essential in the world of stock trading.

Please note that this analysis is intended for educational purposes exclusively. It is advisable to conduct your independent analysis or seek guidance from a financial advisor before making any investment decisions.