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Short Build Up

Position SHORT BUILD UP-INDEX OPTION

Options

Futures

Calls

Puts

Symbol
Strike Price
Prev OI
Curr. OI (%Chg)
LTP (%Chg)

26,050.00

9,62,850

81,53,475

(746.81%)

68.45

(-58.31%)

28,950.00

650

5,460

(740%)

0.8

(-61.9%)

13,775.00

22,400

1,71,920

(667.5%)

34.05

(-61.28%)

13,725.00

15,680

1,19,560

(662.5%)

56.05

(-52.09%)

29,400.00

975

5,460

(460%)

0.75

(-25%)

14,575.00

2,660

14,700

(452.63%)

0.75

(-28.57%)

13,750.00

61,180

3,11,360

(408.92%)

45

(-56.27%)

27,450.00

6,500

31,590

(386%)

81.2

(-59.39%)

29,800.00

715

3,445

(381.82%)

0.75

(-50%)

27,550.00

1,55,925

6,55,125

(320.15%)

0.75

(-16.67%)

29,050.00

1,430

5,525

(286.36%)

1.5

(-26.83%)

29,100.00

1,040

3,900

(275%)

1.05

(-47.5%)

25,950.00

3,33,750

12,41,475

(271.98%)

132.15

(-45.76%)

27,550.00

13,455

47,645

(254.11%)

45.6

(-66.96%)

26,100.00

44,55,075

1,54,90,200

(247.7%)

47

(-63.65%)

70,000.00

2,350

7,825

(232.98%)

24.75

(-67%)

58,900.00

58,485

1,92,150

(228.55%)

255.2

(-44.15%)

28,450.00

2,665

7,540

(182.93%)

2.6

(-14.75%)

14,775.00

2,100

5,740

(173.33%)

0.5

(-23.08%)

27,950.00

14,235

32,435

(127.85%)

3.75

(-73.59%)

26,150.00

43,36,500

97,60,575

(125.08%)

32

(-67.59%)

25,250.00

5,625

12,525

(122.67%)

809.1

(-12.05%)

27,400.00

17,615

38,675

(119.56%)

110.05

(-54.22%)

59,100.00

3,05,620

6,69,235

(118.98%)

142.3

(-54.98%)

13,875.00

80,780

1,75,420

(117.16%)

12.55

(-71.7%)

25,350.00

7,200

15,600

(116.67%)

710

(-12.79%)

27,650.00

1,03,575

2,23,425

(115.71%)

0.7

(-12.5%)

13,825.00

85,680

1,83,680

(114.38%)

20.7

(-68.06%)

70,500.00

4,375

9,175

(109.71%)

11

(-65.3%)

27,600.00

72,020

1,46,835

(103.88%)

31.1

(-72.21%)

27,650.00

33,085

66,495

(100.98%)

21.35

(-76.3%)

13,800.00

6,15,160

12,19,120

(98.18%)

26.95

(-64.56%)

13,700.00

2,12,520

4,18,880

(97.1%)

71.95

(-47.84%)

25,550.00

20,475

39,000

(90.48%)

510.3

(-18.83%)

69,500.00

2,175

4,100

(88.51%)

88

(-43.95%)

27,950.00

38,175

70,725

(85.27%)

0.65

(-13.33%)

27,300.00

10,725

19,305

(80%)

186.5

(-48.25%)

13,600.00

1,16,760

2,05,100

(75.66%)

145

(-33.21%)

27,750.00

38,775

67,800

(74.85%)

0.75

(-6.25%)

13,850.00

2,74,400

4,75,020

(73.11%)

16.15

(-70.04%)

25,150.00

1,275

2,175

(70.59%)

900.1

(-12.12%)

25,900.00

11,97,300

20,35,425

(70%)

173

(-39.87%)

14,400.00

5,60,140

9,46,400

(68.96%)

0.95

(-42.42%)

27,350.00

2,28,450

3,84,150

(68.15%)

0.95

(-5%)

27,700.00

91,780

1,52,945

(66.64%)

14.55

(-78.36%)

59,200.00

6,04,695

9,98,830

(65.18%)

105.1

(-59.64%)

26,550.00

32,20,950

52,92,150

(64.3%)

2.8

(-39.78%)

27,900.00

38,155

62,270

(63.2%)

5.1

(-73.64%)

58,800.00

61,355

97,930

(59.61%)

327.6

(-39.51%)

69,000.00

3,875

6,125

(58.06%)

244

(-25.11%)

26,000.00

70,95,400

1,11,74,300

(57.49%)

97.25

(-51.87%)

25,650.00

36,300

56,925

(56.82%)

410.9

(-22.19%)

14,100.00

7,85,960

12,13,240

(54.36%)

2.05

(-74.69%)

25,850.00

1,77,450

2,61,300

(47.25%)

218.65

(-34.43%)

59,000.00

8,77,030

12,89,260

(47%)

191.2

(-50.41%)

26,350.00

46,19,925

66,79,350

(44.58%)

5.95

(-73.79%)

28,550.00

2,145

3,055

(42.42%)

1.55

(-31.11%)

27,500.00

1,19,990

1,67,895

(39.92%)

59.5

(-64.76%)

13,625.00

7,560

10,500

(38.89%)

119.6

(-37.64%)

13,950.00

3,80,100

5,25,980

(38.38%)

6.1

(-75.35%)

58,600.00

21,840

30,065

(37.66%)

488.3

(-32.17%)

27,800.00

51,025

70,200

(37.58%)

8.25

(-77.43%)

14,075.00

82,460

1,12,840

(36.84%)

2.55

(-73.98%)

59,900.00

3,24,345

4,38,095

(35.07%)

13.45

(-67.03%)

14,000.00

17,05,340

22,82,420

(33.84%)

3.85

(-77.29%)

27,350.00

4,680

6,045

(29.17%)

147.15

(-49.35%)

26,300.00

99,77,250

1,28,23,725

(28.53%)

8.95

(-74.24%)

26,950.00

10,98,900

13,95,525

(26.99%)

1.4

(-12.5%)

58,700.00

1,22,955

1,53,160

(24.57%)

406

(-35.02%)

14,500.00

10,75,760

13,24,120

(23.09%)

0.95

(-26.92%)

13,925.00

1,36,500

1,68,000

(23.08%)

7.55

(-74.83%)

28,300.00

20,540

25,155

(22.47%)

2

(-46.67%)

58,400.00

10,045

12,145

(20.91%)

675

(-25.48%)

14,300.00

8,02,760

9,59,420

(19.52%)

1.05

(-57.14%)

59,300.00

8,33,315

9,80,280

(17.64%)

74.3

(-64.14%)

13,650.00

79,100

90,860

(14.87%)

102.95

(-41.07%)

25,800.00

10,70,550

12,14,775

(13.47%)

263.8

(-30.82%)

59,400.00

6,84,985

7,72,135

(12.72%)

54.45

(-65.97%)

13,675.00

21,980

24,640

(12.1%)

86

(-42.32%)

59,800.00

4,81,425

5,38,755

(11.91%)

16.8

(-68.3%)

58,300.00

7,175

8,015

(11.71%)

776.35

(-22.94%)

58,200.00

9,170

10,185

(11.07%)

860.45

(-19.8%)

27,900.00

3,28,500

3,61,725

(10.11%)

0.6

(-14.29%)

59,600.00

4,89,930

5,37,110

(9.63%)

28.9

(-69.42%)

59,700.00

4,82,405

5,25,700

(8.97%)

21.35

(-69.95%)

29,200.00

3,900

4,160

(6.67%)

0.75

(-48.28%)

27,500.00

52,78,425

55,94,850

(5.99%)

0.85

(-10.53%)

58,100.00

7,455

7,840

(5.16%)

963.3

(-17.88%)

60,000.00

19,91,045

20,86,490

(4.79%)

12

(-61.04%)

61,100.00

78,610

81,550

(3.74%)

4.75

(-8.65%)

26,700.00

70,18,725

71,72,475

(2.19%)

1.95

(-25%)

Position SHORT BUILD UP-STOCKS OPTION

Options

Futures

Calls

Puts

Symbol
Strike Price
Prev OI
Curr. OI (%Chg)
LTP (%Chg)

1,700.00

93,750

5,66,625

(504.4%)

27

(-53.57%)

12,250.00

5,050

30,250

(499.01%)

192

(-62.32%)

1,680.00

36,375

2,10,000

(477.32%)

35.2

(-51.48%)

62.00

4,90,200

27,99,300

(471.05%)

2

(-20.63%)

1,720.00

89,625

4,95,375

(452.72%)

19.65

(-55.34%)

6,150.00

12,300

67,500

(448.78%)

7.9

(-85.33%)

137.50

2,85,000

15,48,750

(443.42%)

0.58

(-75.32%)

1,560.00

8,100

39,150

(383.33%)

56.85

(-8.31%)

57.00

19,350

90,300

(366.67%)

5.24

(-27.22%)

1,720.00

40,950

1,57,850

(285.47%)

10.5

(-58.66%)

1,880.00

24,850

88,200

(254.93%)

2.05

(-61.68%)

12,500.00

59,850

1,99,850

(233.92%)

106.85

(-68.06%)

860.00

3,300

11,000

(233.33%)

129.5

(-6.83%)

132.50

1,38,750

4,08,750

(194.59%)

2.96

(-54.04%)

5,550.00

900

2,100

(133.33%)

98.35

(-35.08%)

1,280.00

69,300

1,61,700

(133.33%)

4.55

(-73.24%)

910.00

27,000

63,000

(133.33%)

6.7

(-39.37%)

2,760.00

82,000

1,81,500

(121.34%)

10.65

(-70.13%)

2,740.00

36,250

79,500

(119.31%)

20

(-61.24%)

177.50

3,80,000

8,32,500

(119.08%)

0.44

(-66.15%)

12,750.00

94,950

1,90,500

(100.63%)

49

(-75.36%)

63.00

6,32,100

12,19,050

(92.86%)

0.82

(-53.93%)

990.00

79,375

1,47,500

(85.83%)

6.2

(-58.25%)

405.00

93,800

1,70,800

(82.09%)

2.3

(-63.49%)

7,000.00

2,59,600

4,70,700

(81.32%)

0.15

(-75%)

2,500.00

98,250

1,74,500

(77.61%)

18.75

(-63.84%)

1,620.00

10,125

17,625

(74.07%)

71.85

(-41.8%)

660.00

1,91,250

3,32,350

(73.78%)

5

(-30.07%)

5,650.00

28,500

49,050

(72.11%)

30

(-55.69%)

161.00

6,14,250

10,53,000

(71.43%)

0.76

(-47.95%)

4,100.00

79,100

1,33,600

(68.9%)

35

(-60.32%)

615.00

7,48,650

12,47,750

(66.67%)

1.3

(-16.13%)

2,780.00

1,34,500

2,22,500

(65.43%)

6.4

(-71.43%)

1,080.00

72,225

1,18,800

(64.49%)

0.65

(-7.14%)

1,480.00

47,975

77,425

(61.39%)

14.2

(-43.2%)

605.00

21,10,250

33,69,500

(59.67%)

3.05

(-8.96%)

140.00

28,91,250

45,41,250

(57.07%)

0.25

(-76.19%)

1,000.00

2,43,750

3,81,250

(56.41%)

3.05

(-66.67%)

12,750.00

53,775

82,725

(53.84%)

50.1

(-15.44%)

6,300.00

27,700

42,500

(53.43%)

49.05

(-54.14%)

5,500.00

2,000

3,000

(50%)

63.6

(-20.5%)

1,010.00

7,05,000

10,55,250

(49.68%)

3.5

(-62.77%)

1,640.00

41,600

62,075

(49.22%)

0.85

(-26.09%)

20,000.00

91,150

1,34,600

(47.67%)

11

(-27.63%)

60.00

3,41,850

4,96,650

(45.28%)

3.14

(-25.24%)

620.00

14,91,550

21,49,350

(44.1%)

0.9

(-18.18%)

6,050.00

11,250

15,900

(41.33%)

34.8

(-71.43%)

1,740.00

3,30,000

4,65,000

(40.91%)

13.2

(-59.63%)

1,260.00

9,13,000

12,78,200

(40%)

1.6

(-3.03%)

6,400.00

84,500

1,17,900

(39.53%)

22

(-57.61%)

4,450.00

49,800

69,000

(38.55%)

6.9

(-71.37%)

172.50

1,40,000

1,92,500

(37.5%)

2.17

(-55.98%)

18,500.00

16,600

22,750

(37.05%)

152

(-27.01%)

990.00

1,29,750

1,77,750

(36.99%)

12.25

(-47.76%)

910.00

5,40,175

7,38,575

(36.73%)

3

(-34.07%)

1,340.00

1,29,500

1,74,300

(34.59%)

12.9

(-40.14%)

2,660.00

37,800

50,700

(34.13%)

13.4

(-43.46%)

1,380.00

39,750

53,250

(33.96%)

0.45

(-18.18%)

1,660.00

1,12,950

1,50,750

(33.47%)

1.25

(-73.12%)

465.00

12,600

16,800

(33.33%)

18.75

(-6.95%)

1,660.00

3,150

4,200

(33.33%)

55.85

(-28.17%)

2,040.00

2,53,250

3,37,500

(33.27%)

4.5

(-62.34%)

1,540.00

5,06,025

6,74,050

(33.2%)

4

(-31.03%)

6,100.00

37,950

50,400

(32.81%)

17.6

(-78.69%)

970.00

14,43,750

19,06,500

(32.05%)

3.2

(-36%)

750.00

3,08,000

4,05,900

(31.79%)

3.5

(-61.33%)

2,650.00

2,55,375

3,32,250

(30.1%)

23.5

(-51.45%)

1,680.00

69,200

89,600

(29.48%)

8.4

(-42.07%)

4,750.00

1,84,200

2,37,600

(28.99%)

1.85

(-7.5%)

490.00

2,65,000

3,41,250

(28.77%)

3

(-33.33%)

900.00

2,81,325

3,61,925

(28.65%)

4.85

(-38.99%)

5,700.00

1,40,400

1,80,600

(28.63%)

13.8

(-65.11%)

1,090.00

1,69,425

2,17,350

(28.29%)

8.7

(-7.94%)

174.00

6,20,000

7,95,000

(28.23%)

0.9

(-52.88%)

317.50

4,56,000

5,82,000

(27.63%)

1.8

(-46.27%)

1,500.00

3,77,150

4,81,175

(27.58%)

7

(-47.76%)

995.00

6,71,550

8,53,600

(27.11%)

3.8

(-46.48%)

1,320.00

1,74,375

2,19,375

(25.81%)

1.6

(-8.57%)

560.00

3,15,000

3,95,000

(25.4%)

0.15

(-40%)

185.00

12,63,600

15,76,800

(24.79%)

0.03

(-50%)

2,650.00

1,00,200

1,25,000

(24.75%)

3.15

(-62.28%)

4,500.00

5,71,600

7,11,600

(24.49%)

4.8

(-25.58%)

2,020.00

1,41,375

1,74,750

(23.61%)

5.9

(-61.44%)

145.00

8,20,800

10,11,600

(23.25%)

1.21

(-48.95%)

135.00

5,21,250

6,41,250

(23.02%)

1.41

(-67.29%)

2,365.55

1,55,118

1,90,653

(22.91%)

0.95

(-59.57%)

5,600.00

18,125

22,250

(22.76%)

1.2

(-22.58%)

3,350.00

1,63,375

2,00,125

(22.49%)

0.75

(-25%)

1,120.00

1,37,275

1,67,875

(22.29%)

10.5

(-15.32%)

1,700.00

1,88,500

2,30,100

(22.07%)

0.5

(-23.08%)

6,400.00

7,600

9,200

(21.05%)

228.2

(-17.41%)

1,700.00

30,100

36,400

(20.93%)

23.8

(-43.33%)

7,700.00

88,500

1,06,375

(20.2%)

14.85

(-58.58%)

2,240.00

3,10,854

3,72,654

(19.88%)

8.95

(-58.94%)

4,900.00

50,000

59,800

(19.6%)

0.85

(-5.56%)

2,550.00

2,46,000

2,94,000

(19.51%)

8.9

(-67.34%)

2,249.20

62,109

74,160

(19.4%)

6.6

(-63.54%)

415.00

43,86,150

52,21,200

(19.04%)

0.45

(-18.18%)

1,560.00

91,000

1,08,000

(18.68%)

0.45

(-25%)

1,520.00

6,56,825

7,77,725

(18.41%)

5.9

(-29.34%)

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Premium

Discount

Script
Spot
Future
Premium(%)

APOLLOHOSP

7,156.00

7,156.50

0.00%

KOTAKBANK

2,164.20

2,164.50

0.01%

FEDERALBNK

262.00

262.05

0.01%

NYKAA

259.45

259.50

0.01%

GODREJPROP

2,002.60

2,003.00

0.02%

What is a Short Build-Up?

Short Build Up is a market condition where open interest and trading volume of short positions increase while the price of the underlying asset goes down. This indicates that investors are turning bearish, expecting prices to fall even more. When traders are selling futures or options contracts, they expect to buy them back later at a lower price to profit from the difference. Hence, it means that more traders are entering short positions. Therefore, it heightens bearish sentiments in the market. For example, if the stock price falls by 3% whereas open interest increases by 10%, this might suggest a short build-up that indicates traders expect a continued trend of the stock's downward movement in value.

Awareness of this phenomenon is very important for the market participants because it appears to be an expression of the collective investor sentiment, which can hint towards the eventual trading opportunity. It can be a warning sign for long investors but gives opportunities to those looking to capitalize on the bearish trend. In general, it is only by understanding these short build-ups that traders can make the right decisions based on the prevailing market conditions and psychology of the investors.

Why Does It Happen?

Short build-ups happen due to several interrelated factors that reflect market dynamics and investor behavior:

  • 1. Negative Sentiment: Overall, bearish market sentiment on a stock or market segment serves as the trigger for selling short in response to a prognosis of a decline in stock prices. Unfavorable news on earnings, economic recession, or negative news concerning the stock are crucial factors.
  • 2. Hedging Strategies: A few investors who are holding long positions in an asset would like to enter short positions through futures or options in order to hedge against possible losses. This hedge creates a short build-up but does not signal pure bearishness.
  • 3. Speculative Trading: Traders may do short selling purely based on speculation as they feel an asset is overvalued and, therefore, has to correct itself. This speculative behavior further increases the short build-up as more and more traders enter the market by expecting a fall.
  • 4. Momentum Trading: When downward price momentum accelerates, fear can cause panic selling, which increases the short positions and intensifies the short build-ups.

These factors lead to short build-ups and reflect the overall broader market trends as well as investor psychology.

How Does It Help You?

Understanding short build-ups provides several advantages for traders and investors looking to navigate market conditions effectively:

  • Informed Decision-Making: Recognizing a short build-up allows investors to adjust their strategies accordingly. They may decide to enter short positions themselves or hedge existing long positions against potential losses.
  • Risk Management: By identifying strong bearish signals through significant short build-ups, traders can implement risk management strategies to mitigate potential losses. This could involve setting stop-loss orders or diversifying their portfolios.
  • Market Insight: Analyzing short build-ups enhances an investor's ability to interpret broader market dynamics and trends. It provides insight into market sentiment and potential future movements, enabling more strategic trading decisions.
  • Opportunity Identification: Traders can capitalize on price declines associated with short build-ups by timing their entries and exits effectively, potentially leading to profitable trades during bearish phases.

Recognizing and understanding short build-ups equips traders with valuable insights that can enhance their trading strategies and overall market engagement, ultimately improving their chances of success in volatile markets.

FAQs

What is a short buildup?

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A short buildup occurs when more investors enter short positions, anticipating a decline in asset prices. This situation often arises due to negative news or overvaluation, leading traders to sell futures or options contracts to profit from expected price drops.

What is the buildup rate?

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The buildup rate is a method used to determine an investment's capitalization rate by summing various risk factors and adding them to a risk-free interest rate. It helps calculate the expected return on an investment considering its specific risks and market conditions.

What happens when there is a short build-up?

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When there is a short build-up, the price of the underlying asset typically declines as more investors sell short. Increased open interest indicates that bearish sentiment is prevalent, which can lead to further price drops if the trend continues.

What is the difference between long unwinding and short buildup?

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Long unwinding involves selling existing long positions to realize profits or minimize losses, increasing supply and potentially lowering prices. In contrast, short buildup refers to increasing short positions, anticipating further price declines due to negative market sentiment.

How to identify short build-up in the option chain?

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To identify a short build-up in an option chain, look for increasing open interest alongside declining prices of the underlying asset. A significant rise in put option volume relative to call options can also indicate bearish sentiment and potential short positions being established.

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