Why is it so that after rallyof around 3% up by cairns india option premium of April calls is reduced like anything??is it means cairns will fall drastically tomorrow …kindly enlighten why it has happened in such way…march calls increased like anything but April calls reduced drastically …
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Good Question. I too amused at this.
All odds are against a Call buyer, only the person who makes money is Call writer. In India it is not feasible to buy Put or Call options since the Liquidity is very low and due to time decay only Put/call writers make money
Maybe its because the merger is negative for cairn in the long run because its cash will be used to pay off the debts of Vedanta and since option writer are smart they have written next month calls and have taken short position.