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Option Data Trading

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– Option Chain Analysis can be used to find out the actual trend of the particular stock or index. Usually institutions and big funds sell options. By finding out which strike has more open interest, we can actually understand the support and resistance levels of a security (be it stocks or indices) for that expiry.

How to do option analysis? Option analysis involves studying various parameters like strike prices, premiums, implied volatility, open interest, and time decay. Combining this data with technical and fundamental analysis helps assess potential trade setups and risks.

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