Why would somebody want to sell Nifty Jan 12400 call at 10 paise with 3 days to expiry?

Can someone explain why is someone trying to sell 12400 Nifty call at 10, 20 paise with 3 days to expiry? Doesn’t make sense at all.

For a 7.5 Rs profit, 74,000 will be blocked as margin before accounting for brokerage and other charges

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It has to be a square off trade, people who were long trying to exit. The buyers at 5 paise I guess you’d know are short guys trying to exit. The short guys if they are despearate enough to release the margins, they’d not mind buying at much higher than 5 paise. So I guess these guys trying to get lucky by placing orders at 20p, 30p,40p,etc. Long long time back, I used to do these trades, try buying options at 5 to10 paise on deep OTM strikes with a lot of OI in the last week and then place sell orders between 20 paise to Rs 1 and hope to get lucky with some big short trying to rollover/cover the contract. Shorts who’d want to release their margins to get into other trades. That trade had a decently positive return over the time period I used the strategy.

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