During last few expiries, I have noticed that the ATM Strikes CE and PE are at complete mismatch. In today’s Expiry also, when Nifty was at 19390 levels at 2.52 P.M., 19400 CE was trading around Rs. 9 where as 19400 PE was trading at Rs 8. Complete mismatch. 19400 CE which was 10 points was trading at more price than 19400 PE who was in the money.
More surprisingly, after 2-3 mins 3 PM, Nifty touched 19380 levels but 19400 PE remained same all the time. Has indian markets started following another style of option trading? I am observing this since we have 5 expiries in a week, all the ATM premiums have declined drastically.