Identifying Support/Resistance using MAX OI strike levels

  • A picture is worth a thousand words.. see how at various strikes one can identify support /resistance based on max OI change at which max OI strike,
  • if max OI buildup, implies that a significant level for support(put)/resistance(call) is being formed  with writers willing to write comfortably on that
  • if max OI unwinding, implies that the writers are cutting their positions because they feel that support(put) / resistance (call) level is going to be breached, so they go away from there

support-resitance-strikes

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