how options open interest hints direction of market movement

​suppose market spot is at 8000

then check 8000CE and 8000PE open interest.

let's assume these are 2500k and 3500k respectively

let's also asssume premium for both is 50 rs. and 120 rs respectively

in this scenario, assuming operators are mainly options writers, which i think is a right assumption

operators​ will like to move in the direction where they gobble up more than they shell out

in this case premium on table for 8000CE is 2500kx50=1,25,000k

vs premium on table for 8000PE=3500kx120=4,20,000k

in this case, operators will obviously want to throw 8000PE "out of money" by taking market above 8000

this way they get to eat 8000PE premium

now, 8000CE becomes in the premium becomes "in the money". operators would risk giving something from this premium to the holders of 8000CE.

thus operators have gained 420000k by losing 125000k.

thus is the direction decided or estimated from the options data as to where the market may be taken by the operators

larger the gap between the "premium on the table" at any strike level decides how strong is that gate for the operators to crash.

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dear siva,

i have shared one of my prime learnings with u. i was always hesitant to share such advanced things fearing that operators will stop using these tactics once formulae are exposed......i think i must be acting naive by thinking this way. 

anyway, i have penned it down courtesy you. now i will archive this in my blog.

hope this learning of mine is right and not flawed

any feedback or query welcome