Earn Profit by this open interest (OI) trick in Options Trading

See above highlighted open interest data and let me know as the data where market is supposed to go?

Obviously, CALL OI is higher than PUT OI which means from a retail trader point of view market should go up.

Here CALL open interest is more than twice the PUT. As I mentioned earlier, a typical retail trader would see it as a bullish signal.

But not you. You will see it as a bearish signal. So smart money is selling CALL options and they will do their best to keep the market down till the expiry so they can take advantage of Theta decay.

As per the OI data where CALL OI is higher, it shows that options sellers don't want to let the market go up. They have good amount of money to beat the options buyers.

To sum up, if you find that CALL OI is more than PUT then understand market would go down and you should buy PUT options.

On the other hand, if you would find that PUT OI is more than CALL OI then understand market would go up and you should buy CALL options.

Next, you will draw support and resistance on candlestick chart (watch my candlestick course to understand) and then you will patiently wait for a breakout in the favorable direction.