Can open interest on options move underlying spot in case of Index due to Pinning the strike concept in Indian markets.
These days we can see many time options premiums move sharply due to gamma move on expiry ultimately also move but then what about the concept of derivatives which derives its value from underlying
In my opinion, this is debatable (pinning the strike and its sole impact on the underlying spot price). Some believe that pinning can influence the spot price, leading to intentional or unintentional manipulations, while others say that market forces and broader supply-demand dynamics primarily determine the spot price. When options premiums move sharply due to gamma moves or other factors on expiry day, it can create short-term volatility and affect the sentiment in the market. However IMO these movements in options prices do not necessarily dictate the movement of the underlying spot price. The spot price (of an underlying index) can be influenced by a wide range of factors, including economic indicators, investor sentiment, corporate earnings, and global market trends etc… hence I think the concept of pinning the strike and its sole impact on the underlying spot price is a subject of debate. It might be a good idea to consider multiple factors that influence the spot price rather than relying solely on options premiums or gamma moves.