What is the question?
While trading the indices were around 17623 on 23.8.2022 but after 3.30 P.M the candle was at the same position but the value fell to 17577. How can it happen?I have attached the screenshot also for reference. My loss will be extended if not cleared.
last half hour nifty takes weighted average method , during market hours even though it tracks exact movement but after market hours they adjust the nifty using weighted avg method . This, you can see every day once market closes nifty value will be changed slightly.
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I took 17650 Call based on 17623 Candle. Now indices are at 17577. What can I do to recover?
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you cant do much , just wait for nifty to recover , which expiry you took ?
The price you’re seeing on the charts is the LTP (Last Traded Price), while the price in the marketwatch is the final closing price. The exchanges determine the final closing price using the weighted average price of last 30 minutes of trading and this can differ from the LTP. Explained here.
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never buy based on last price after 3.20 pm.
should not be a major issue unlss theres a big gap down as future still closed higher. although at expiry, spot is used to determine option pricing
This is what happens when retailers jump in option trading w/o any study or hard work. I bet you also have very little capital, hence chose option buying.
Also you have not bothered to at least read varsity.
My suggestion - buy 20rs lottery. More chance that you will earn money there than here.
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Pray to god for gap-up.
Close price is determined by last 30min weightage average price which is for settlement purpose. And it will not be reflected in broker charting platform as candlestick is formed by Traded price not the weighted average price but you can see this on Live stock, index, futures, Forex and Bitcoin charts on TradingView by changing RTH to ETH , which provide pre/post market session on chart.
Actually it doesn’t matter. U thought nifty was at 17620 plus and bought 17650call. The pricing of this option was as if nifty was at 17580 only because everybody knew the closing price is going to be adjusted. Everything is priced in.
But the trigger to buy it was wrong. So price wise you won’t lose much.
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That’s applicable on expiry days but on other days, the market prices the options as per the futures contract and not the spot price.
For example - the LTP of 17650 CE was 75 and the LTP of 17650 PE was 85.
This gives us a synthetic value of 17640.
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Not just the expiry day. It’s for all the days futures and option prices have to match. It’s just that futures and spot prices will be same at the time of expiry.
What I was actually saying is whatever price he bought the option, it was the right price. Basically he shouldnt feel that it was overpriced. If it was, then it would give a chance for arbitration for big players.
Totally agree with this.
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Ok bro