IF fresh call OI builds up at a strike that is less than 1.5% above the current spot price AND put OI builds up symmetrically below spot — THEN as a buyer, you are looking at a pinning setup, not a breakout setup. Today's INFY chain is the textbook example. The 1,260 CE wall is only ₹18 above a ₹1,242 spot — that's 1.4%. When market makers and institutions install a call wall this close to spot, they are explicitly saying: we expect this stock to go nowhere tomorrow. For a buyer, the breakeven on a 1,260 CE (premium ₹24) is ₹1,284 — which is already above the next wall at ₹1,300. You need the stock to blast through two walls just to make money. The rule: distance between spot and the nearest call wall must be at least 2–3% for a call buy to have structural room to breathe. When the wall is closer than 1.5%, the trade is structurally compromised before you even dial the broker. Look at the gap first, then the OI direction.
No comments:
Post a Comment