Nifty Next week: Some thing is unusual, Nifty options open interest

About 11 million (1.10 crore) shares were seen in total open interest of nifty 5800 call option. Having such a high open interest is unusual thing and has many surprises in it. What I feel is market might have created a intermediate top for short to medium term. Suggests some selling is on the way for markets, VIX is also around 52 week low. Suggest me that nifty is going to see major selling in short term, but it doesn’t mean that trend has become down. Trend in nifty still remains up trend and so our strategy to look every decline as buying opportunities. See the open interest chart below or you can download the excel sheet from here.
Trading this type of fall is more risky as it will be against the trend, so one can buy Nifty 5700 call option and Nifty 5700 put option with total premium of around 67. Total premium of (call+put ) of 100 will be target. Exit this strategy if total premium drops to 45. This strategy will work if markets gives wide move in coming trading sessions, which is mostly expected, as global uncertainty still persists. Swing traders must be stock specific with bullish view on stocks like ITC, TCS, etc. Article published on 21 October 2012.
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2012-10-22 00:04:46
Source: http://ournifty.com/nifty-next-week-nifty-options-open-interest-surprises.html
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