Nifty June 2019 5000 strike

The OI of call options of strike price 5000 of June 2019 expiry is at 1,421,100 contracts, what could be the reason ? Could we see Nifty around 5000 - 6000 in June 2019

to confuse people like you and make you offload your long term investments on the next dip.

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What you are mentioning is highly probable, BTW forgot to mention, the information was excerpted from an article on Bloomberg quint.

Ignore such faltu OI and all, if market really has to go there, they would show 5 times OI at Nifty 15000 to you

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Bro only World War 3 can bring nifty to that level :joy:

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@Bull4life it could be a bullish sign because buying deep in the money(and its ā€œdeep in timeā€ as well coz expiry is Jun 2019)options is tantamount to taking a position in the futures segment

Check out this

However, there is a huge buildup at the 5,000 call option. Price of the option is Rs 5,680 and the open interest is 12.29 lakh shares. This position has more to do with arbitrage than any directional bet.

This is because the price of Rs 5,680 is not only below the theoretical price of Rs 6,109 but also below its intrinsic value of Rs 5862 (Market Price - Strike Price). The traders who have built up the 5,000 call position have placed the bet to capitalize on the mispricing.

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we can expect recession in 2019 (after 10 yrs of 2008 crash) and nifty may be @6000 (feb 2014 Low)

It wont go there, just imagine one thing if a student comes 1 hour late to a class, then does teacher repeat the entire class again for that student?

Same way you believe operator is so kind they will take market back to pre-Modi levels so that all you new people come and make money?

That will happen only if North Korea throws a nuke on some country and we have a World war 3, otherwise market is not so kind

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Traders are slaves of volatility, we long for volatility only.

For circulating profits between benami accounts for tax evasion.

This is explained here in this article , as soon as i finished reading this and wanted to share, they made the content chargeable. what a shame.

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I also read the same article on Bloomberg quint blue for Rs.18, but raised the same topic here to seek what other market participants have perceptions about it. After reading the article I truly feel that financial markets are ā€˜engineeredā€™, and retail traders are like five blind people ā€˜feelingā€™ the elephant for the first time, and each one having his own but vital opinion!image

But options have decay too, will the decay erase the arbitrage opportunity on such a large bet ?

Well anything & everything is possible in marketā€¦
If yes bank, DHFL, pcj, zeel can come to these levels, nifty can alsoā€¦ But canā€™t without a newsā€¦
As per chart itā€™s still very strong & canā€™t go beyond 9000, during news all supports fail especially fearā€¦