After Infosys results why the Call prices increased at a faster rate than the rate at which Put price decreased?

General
1

I bought 2100 CE and 1800 PE. When the result was announced, Call price increased by 100% while Put price decreased by 60%. What is the reason behind this?

2

I am not an expert, but my analysis is this: The Infy results were positive for the market, so many people started buying the calls and few people bought puts, since the demand for call is high, the price accelaration is high (100%), logically, the put should decelrate equally, but due to lesser volumes of people on ‘put’,it decelerates slowly. (60%)

3

Guys, volume has nothing to do with this. Please do have a look at this -

http://tradingqna.com/1566/volatility-announcement-election-trapping-participants?show=1573#a1573

4

Hi

This is because contracts has still time to expire, May be the premiums will reduce, even though Infy is UP, you can't expect all PUTS to go to Zero.

Best Regards

5

Luckily, its not the other way around, you should be happy to make profits. lol :stuck_out_tongue:

6

Yes indeed :slight_smile: But still do you have the reason for this? So that I will be cautious next time

7

I am not an expert, but my analysis is this: The Infy results were positive for the market, so many people started buying the calls and few people bought puts, since the demand for call is high, the price accelaration is high (100%), logically, the put should decelrate equally, but due to lesser volumes of people on ‘put’,it decelerates slowly. (60%)

8

@prashbhargav, u hv put forth ur thoughts in simple words. i agree with u.

9

Thank you @sukam

10

when is infy result?