Is Nifty going Crazy, or an Arbitrage Opportunity?

General
1

Hey @Sensibull , Nifty CMP right now is 19419.
The PE 21000 of Dec 2023 is trading at 1267.

Assuming no time value, nothing else, 19419 + 1267 is 20686 (Which should be more than 21000 at least, theoretically).

In fact, even if I consider the Nifty Fut Oct, it is trading at 19601,
So, 19601 + 1267 is 20,868 (which should be more than 21000 at least, theoretically).

Is it an arbitrage opportunity, or is there a piece of the puzzle missing here?

@ShubhS9 @Meher_Smaran

2

You should consider Dec futures.

3

@Jason_Castelino Theoretically yes. But, only next 3 contracts are available right now.

4

That’s the problem. So it won’t become riskless. If you take the trade using October futures and Dec put, it won’t be riskless. Infact the day Dec futures are available for trade it will at such a price that 21000pe even has time value in it.
So if I have to guess, Dec futures are right now at 19900 at least.

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