We highlight a very important feature of Heckyl F&O platform: 15-Minutes Built Up Screen in today’s blog. For every stock, this screen gives a snapshot every 15 minutes for the open interest (OI) and a breakup of fresh and square-off contracts along with volumes.
While there are various use-cases for the 15-minutes built up screen, we highlight the short selling use case in this blog. Short selling implies selling a stock on a particular day and buying the same on the next trading day. The underlying reason for short selling is that the trader expects the stock price to go down. An equivalent of short selling can be buying a put of an appropriate strike price.
Short selling is always considered to be a risky bet and retail participants tend to stay away from it. However, using our distinct tool, one can spot where the short or long positions are created in real-time by looking at fresh and square-off contracts along with the movement in price and volume.
We highlight a case study for HDIL. On 18th September 2015, the 15-minutes built-up screen dashboard for HDIL indicated that just 11 fresh contracts were opened since 14:15 p.m. i.e. last 75 minutes of trading. The Zone was primarily Long Unwinding with significant jump in the contracts that were squared off.
A Long Unwinding zone (which corresponds to both price of future and OI going down) is seen as bearish for the future in the short-term.
Clearly an appropriate trading strategy can be built to capture this event. A positional trader can either buy an appropriate put or hold on to its short position and wait for opening on Monday, 21st September.
As expected, HDIL opened up with a gap-down on 21st September, Monday. The stock reached a low of INR 62.35 i.e. down by almost 3% in the morning session. By using Heckyl’s 15-Minutes Built Up screen, one could have made profits by using the short-selling strategy.
The F&O solution of Heckyl will help a trader to make profitable trades on-the-go in the market. To know more, mail us at firstname.lastname@example.org.