New nifty expiry after today's drama

F&O
1

I am sure most of us are already aware about the drama that happened today. Now for tomorrow expiry, how it will work out?

I guess nifty futures and options will be trade normally between 3 to 3.15. After that f&o will continue trading but without any movement of underlying. Right?

Then at around 3.20 reference price will be there and then 3.30 to 3.40, there is blind guessing of where the closing is.

Then for options on expiry, why there is continuous trading till 3.40. You get reference point at 3.20 and then final rate at which all options will be settled.??

Also, this new system creates chances for higher manipulation. What if closing price is above 500-600 points above reference point. That is a quick legalized way to make profits. Just buy otm call, buy underlying only 3% above and you will make tons. Pathetic

2 Likes
2

Premium will be increased by sellers to account for that risk.

Final rate will be available at 3:30. No more changes after that.

AI says closing price is bound to be within 3% as per rules. I think JS tested the limit with Bajaj Auto today.