Question based on a conversation in the slack channel

Why tatacomm is staying thr?

Amit Ghosh [7:24 AM]
tons of puts sold.


as market turned bullish mad put selling will hold many stocks

So unless it breaks that...
It ll nt fall

Amit Ghosh [7:25 AM]
not break.
it has to close cbsl.
then break pdl.
600pe needs to unwind.

Now my question is

  1. you said put selling will hold many stocks meaning put selling holds the stock from falling right?
  2. you also mentioned about closing cbsl and then break pdl and 600pe needs to unwind what happens when this scenario happens? Its slightly confusing… when ccbsl and break pdl ->then there is an indication that this will fall right? so the 600 PE sellers will unwind (meaning they will start buying 600PE) which will further push the stock down… is my assumption right?

People are selling put options of 600. Big people.

Question is when they will close it? When TATACOMM close below 600 is an assumption. This is CBSL. Closing Basis Stop Loss.

When they will go short? If next day the PCL breaks! Then 600 CE will be added too.

Its a general assumption that if a put is sold stock is supposed to stay there! Theory of Money flow. Big people will buy to make them in profit.