How to trade options by analysing big player activity?
Jun 09, 2025
Options trading requires an understanding of momentum. The best indicator to measure this is using Keltner Channel along with KST indicator.
Which are the Powerful Indicators to use for Options buying?
Below chart shows application of 4 powerful indicators – Keltner Channel, Volume Profile, Open Interest and KST momentum indicator. When combined together it can lead to interesting results.
Jindal Stainless Ltd. 15 Mins Chart:
Jindal Stainless 660 Call Option 15 mins chart:
Volume profile – Volume Profile is a powerful tool that highlights price levels where major volume is accumulated. One of the key components of this indicator is the Point of Control (POC) – the price level with the highest traded volume. Volume profile helps to derive price action area which helps to find critical support and resistance zones, allowing for more precise entries and exits
Open Interest – showcases the total number of outstanding contracts for a specific asset at any given time. Also, OI is best interpreted from the perspective of option sellers, often considered the “smart money” or institutional players. As we can see prices broke above its POC area i.e., 662 levels which near its important hurdle as per the OI data, giving a classic buy signal and one can utilise it by buying call option or futures.
Call Option - We can observe that 25 levels has the highest cumulative volume in this strike. On 05th June 2025, prices broke above POC area i.e., 25 levels which we combined with Keltner channel breakout for getting the perfect entry. Also, just a breakout is not sufficient as it has to be looked in conjunction with KST Momentum indicator crossing the zero line. So, on 5th June 2025 prices broke above the Keltner channel with KST confirmation and showed a rally of more than 50% in a short period of time.
In a nutshell, option trading can be made easier by using these simple methods of analysis. One can clearly do option buying by analysing Open interest profile & Volume profile and combined them with KST and Keltner Channel indicators.
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