Today 4th Aug was last day of Bank Nifty Weekly options expiry.
At Market Close Today...
Bank Nifty Aug Future closed at 18745
Bank Nifty Spot closed at 18638
And 4th Aug Expiry Weekly 18600 Call Option closed at ZERO.
As there is no any Weekly Futures Contract, ideally it should be 147 (future price) or 38 (spot price).
My Q is Why it closed at ZERO.
How Weekly Bank Nifty Option Price Calculated ..??
Dear friend
Any F&O contract expires @ the settlement closing price of the underlying which in this case is BankNifty Spot Index. The closing price which you are referring here is the last traded price @ 3:30PM where as the daily settlement prices comes as the price weighted average of last 30 minutes.
Today, from 3pm bank nifty moved up from approx 18530 to 18654. So the settlement price for this 30 minute trade comes out @ 18571.70. Thatswhy the 18600 call closed @ Zero.
So, any options trader need to give due importance to the weighted average price during the expiry day.
You can refer to the article How to Turn Bank Nifty Weekly Options into a Regular Income-Driving Machine?
I hope this helps.
Where can I find weighted average price in real time
Thanks Mohan … Can you please tell how Weighted Average of last 30 minutes get calculated. Formula Please …
Sorry friend for the late reply. yes you can find the same by adding another column in the software market watch - PREDICTIVE CLOSE… This gives the estimated close price… I hope this helps.
What does a Bank Nifty ITM CE/PE entitle one to ? How is the underlying Bank Nifty passed on ?