in the above image why option premium for 35100 is showing less than (spot price - strike price) ?
( in the money ) Option premium = (spot - strike) + time value + ( IV or dividend etc)
I am trying to figure out where I made a mistake… ( help me )
( I even bought a 35100 CE at 1.9 to know what happens XD)
Bank Nifty closed at 35134, so will I get 34 (=35134-35100) or I lose 1.9*25?
What time did you took this screenshot? Between 3 to 330? Index close price is calculated as weighted average for last hour. So, closing price won’t match with last tick that you see in chart
I took that screenshot around 3:20
last traded price is considered for option contracts right? ( LTP is the price of last tick in the chart)
closing price is showing as 35095 ( It’s a weighted average as u said)
now what will be the profit or lose for those who bought 1 lot of BANKNIFTY 35100 CE ?
The option price was following the BANKNIFTY MAY FUT price.
Though the spot was 35168 the future price was 35096 at that time.
what!!! how bro?
option price should follow BANKNIFTY right?
No, closing price is used to calculate option price. 35100 CE Expired out of the money and value is zero
Option price follows the closing price on Expiry. Futures shows this weighted avg between 3 to 330 on monthly expiries.
this thread has answer for most of my questions. thank you