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alex_laxya

Futures and Options Related Stats.

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Please post your experience regarding above subject. How you guys put those futures and options related stats in trading context ? And what is your experience using then. I myself use option related data for day trading in indian market ( nifty future ) & put that data in context with auction theory to make sense of the information and avoid bias opinion. I have some limitations to back test those trading ideas 'cuz of limitations of hystorical option related data (IEOD). I wonder if that data is available for other exchanges and some one backtested ?

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That is a an interesting line.

 

There is enough evidence to show that in some markets -especially the newer emerging markets like the one you trade in the underlying cash markets actually lags the derivatives market.

See this study:An econometric analysis of the lead-lag relationship between India's NSE Nifty and its derivative contracts

 

So looking at the market action in the derivatives markets are probably the best form of market internals. I would look at volumes and open interest in the ATM options and see how they are doing. What is your opinion?

 

The other approach I would look at seriously would be to look at forecasting volatility. Volatility forms predictable trends and if we are able to forecast volatility reliably it is a very good input for trading. Volatility is far more predictable than prices.

 

Jose

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Thats the point, derivatives in emerging markets is really in nascent stage, ATM open interest has one more substitution which i practice, average out oi of 10 most active contracts for puts and calls for current series and divide. Instead of volume if bid - ask data analysed then picture will get more clear provided data is pure tick data & not snapshot.

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For the Indian markets eSignal has no options data and I am using the Futures OI - the tick Bid/Ask data. It seems to be an excellent predictor.

 

I am as you suggested looking at deriving a look at the market internals by analysing the Call and Put OI - the Bid/Ask ticks. What data source do you use for that?

 

Jose

 

Thats the point, derivatives in emerging markets is really in nascent stage, ATM open interest has one more substitution which i practice, average out oi of 10 most active contracts for puts and calls for current series and divide. Instead of volume if bid - ask data analysed then picture will get more clear provided data is pure tick data & not snapshot.

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I'd suggest that you learn to spell Baruch. None of these are Ivy League schools; the common thread seems to be that they're located in big cities. All can give you a good education, but you'll pay dearly for the privilege; they're expensive.Ivy League schools usually aren't enthusiastic about transfers except in very unusual circumstances; they like to have you there from the beginning.

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The market analysis in the stock trading can be clearly analyzed using the premier options advisory services.This clearly makes its customer's to understand about the stock market ,its values, future of the stock market etc.Thus nowadays i can make more profit than before!!

 

 

(promotional URL removed)

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There is very good software ' option oracle'

SamoaSky | option analysis software

It's totally free and I have no vested interest in the software, I found it very useful especially option pain and voltility smile are built in indicators which are useful for option writers like me.

Kojak I use one custom software which fetch data from my terminal to multicharts.

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