rahulcommercial Option Chain Analyzer
Turns a raw NSE option chain JSON into actionable structure.
When to use
- User pastes / fetches option chain data and asks for a read.
- User wants to identify max pain, PCR, or notable OI build-up.
- Pre-market or intraday: "where is BankNifty likely to pin?"
Inputs
Either:
- A JSON dump from NSE's option chain endpoint (
https://www.nseindia.com/api/option-chain-indices?symbol=NIFTY), or - Strike-wise call/put OI + premium tabular data.
Computations
Max pain
Strike at which total OI value (writers' loss) is minimised. Often acts as a magnet near expiry.
max_pain_strike = argmin over K of: sum_i max(K - K_i, 0) * call_OI_i + max(K_i - K, 0) * put_OI_i
PCR (Put-Call Ratio)
PCR_OI = total_put_OI / total_call_OI
1.3 → oversold / bullish reversal zone (contrarian read)
- < 0.7 → overbought / bearish reversal zone
- 0.8–1.2 → neutral
Support / Resistance from OI
- Strongest resistance = strike with highest call OI above spot.
- Strongest support = strike with highest put OI below spot.
OI build-up classification
| Price | OI | Reading |
|---|---|---|
| ↑ | ↑ | Long build-up |
| ↑ | ↓ | Short covering |
| ↓ | ↑ | Short build-up |
| ↓ | ↓ | Long unwinding |
IV skew
Compare ATM call IV vs ATM put IV. Put IV > call IV → fear premium. Useful for direction bias before events.
Output format
Return a structured summary:
Spot: 24,150
Max pain: 24,200 (likely pin near expiry)
PCR (OI): 1.18 → mildly bullish
Resistance: 24,300 CE (highest call OI)
Support: 24,000 PE (highest put OI)
Notable build-up:
- 24,500 CE: short build-up (+3.2L OI, premium ↓)
- 23,900 PE: long build-up (+2.1L OI, premium ↑)
Caveats
- NSE data has ~3 min lag; max pain is a tendency, not a guarantee.
- On expiry day, max pain pull strengthens after 1 PM IST.
- Always check FII/DII data alongside — OI alone misses positioning context.