Nifty Index options

F&O
1

If one has bought or sold index options, Is it good to buy or sell index futures if there are no buyers/sellers for those options and there is around 10 days to expiry? or we should simply leave such options for expiry?

Suppose:

Case 1: If I bought a nifty OTM CE at a premium of 10/- rs in second week of month and it the premium for this option goes up to 50/- in 3rd week. with no buyers in market.

Case 2: IF i sold a nifty ATM CE @ 100/- in the second week and in 3rd week the premium goes down to 20/-. with no buyers in market. can I square off this trade by simply placing an order and buying this option @ 20/-

2

case 1: Based on theoretical calculation exchange follow, settlement price might go up if spot move in buyers favour direction though no further trade. in 3rd week of month, less Likely to premium reach 50 with no buyers.

case 2: already short solded the contract, now, have to buy and close the contract. hence, if there is any offer (seller) is available you can close the contract. If no seller, you cannot square off the contract.

1 Like
3

There are never “No buyers” for those cases in index options

Scenario is not possible, so dont fret over it

4

ok. thanks for help.

5

Thanks for reply.