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MSB - Market Structure Break

The document discusses how to find resistance levels in options trading. The strike price with the highest open interest for out-of-the-money call options indicates resistance, as option sellers write calls above that price expecting the stock not to reach it before expiration.

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Kumar SIVA
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64 views1 page

MSB - Market Structure Break

The document discusses how to find resistance levels in options trading. The strike price with the highest open interest for out-of-the-money call options indicates resistance, as option sellers write calls above that price expecting the stock not to reach it before expiration.

Uploaded by

Kumar SIVA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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How to Find Resistance:

Find out the OTM CE strike which has max Open Interest.
This strike will be the resistance for this series.

Because generally Option Seller writes OTM CE or Sell OTM CE thinking that price will
not cross above that particular price within Expiry Day

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