Exploring Option Scans Screener

A Comprehensive Tool for Smart Trading

In the fast-paced world of trading, identifying opportunities quickly and correctly determines everything. The powerful tool for filtering and analyzing market data, based on one's preferred criteria, presented on TalkOptions - Option Scans Screener, allows traders to make sound decisions. For both the seasoned and the novice trader, this screener provides actionable insights on what the future holds for open interest, volume futures, basic futures, v-wap equity, and the put-call ratio, amongst other vital sentiment and activity indicators.

What is an Option Scans Screener?

Option Scans Screener scans for trading opportunities in the Future and Options (F&O) space based on key parameters such as price movement, open interest, and volatility to help traders make an informed decision tailored to their respective trading strategy.

With its intuitive interface, traders can easily gain access to top-performing stocks, analyze price trends, and gauge market sentiment via metrics such as put call ratio and v-wap equity.

> Key Features of Option Scans Screener

1. Future Open Interest Analysis

Open interest is one of the key indicators showing the total number of open contracts in the market. The screener categorises the stocks as:

OI Up: Higher open interest; this represents participation at the same level and bullishness.

OI Down: Lower open interest; indicates that people are closing their position or have low confidence.

For example, if Stock A shows "OI Up" accompanied by volume, it may indicate a potential price rally. On the contrary, "OI Down" may indicate waning interest and hence, a possible price drop.

2. Price and Volume Futures Insights

The screener throws light on the most active futures contracts as well as the price movers

Prices Up and Down: This will shortlist the stocks that have reported the highest price gains or losses in the F&O segment.

Volume Futures: It points out the most active futures contracts traded that help to find where the interest is.

for example, if a contract of any Stock increases rapidly in volume, then it means that there is a large interest in the contract probably because of the news or events coming soon.

3. Fundamental Futures Analysis

fundamental futures reflect the price difference between the futures contract and the spot price of its underlying asset. Traders can follow:

Basic Up: Suggests an upward widening price spread which may potentially generate arbitrage.

Basic Down: Indicate price spreads tightening, useful for hedging, or a directional strategy

Using these values, the trader can refine his futures trading strategy based on market momentum.

4. V-WAP Equity: A Volume-Based Indicator

V-WAP (Volume Weighted Average Price) is one of the most critical technical indicators that price movements are judged against:

VAP Above: Indicates a positive and advancing momentum

VAP Below: Reflects the bearish sentiments and possible downward movement.

For instance, if Stock trades higher than V-WAP with accelerating volume, this might be interpreted as strength and a buy setup.

5. Put Call Ratio: Measuring Market Sentiment

The put-call ratio, or PCR, is the ratio of put trades to call trades. It is one of the most used indicators, which measures market sentiment:

PCR Up: An upward movement indicates bearishness as increasingly more traders are buying puts.

PCR Down: When PCR is declining, it is a bearish signal as traders are showing increased interest in call options.

For example, when the PCR of Nifty increases, it may suggest that traders do foresee a correction in the index.

6. Additional Insights from the Screener

Data provided by Option Scans Screener also includes:

Stocks near their 52-week highs and lows: in the F&O segment, which will guide traders to breakout trades.

Delivery stocks: Heavy delivery volumes point toward some price action on the equity side.

Rollovers: Examine carryovers of positions that can indicate long-term sentiment.

Conclusion