Today i.e. 10 April 2024, the nifty spot was trading around 22695-705 at 3:25, but the option premium for 22650 CE expiring today was trading at 100-105. It should have been around 50, never went below 100 . Later when the market closed the spot was revised to 22753.
Can anyone explain the phenomenon at play here?
TIA
are you watching right chart? nifty was trading above 22750 the whole 30min, only last 5min it came down a bit but averaged it to 22753 in the end.
Not sure if you are aware of this so mentioning it for your reference.
Closing price is calculated as the weighted average price of the last 30 minutes. It can be different from the last traded price (LTP). You can read more about it here.
Market also knows that closing price is going to be the weighted average, so the option premium in last 30 mins is more inline with the weighted average instead of the LTP of the instrument (Nifty, BN, etc).
Hope that helps.
Thank you for your replies. My confusion is cleared.