Prediction of movement on NIFTY and BANKNIFTY

General
1

Hi,

If we purchase NIFTY 16000 CE or BANKNIFTY 36000 CE July end expiry, how exactly does the settlement happen?

If after 5-6 days, we observe a profit we can exit the option contract because the movement appears to be slow initially in the contracts.

Can anyone resolve this query?

Secondly,

What are the best non-technical indicators to predict index options-- nifty or bank nifty?

Best Regards.

1 Like
2

You can square-off your position anytime before expiry. The difference between the price at which you buy/sell at and square-off at will be your P&L.

If you don’t square-off your position, then upon expiry, if the position is ITM, it’ll be settled by the exchange at intrinsic value and if the position is OTM, it’ll expire worthless.

Index Options are cash settled, so you don’t have to give or take delivery of underlying. You can refer to this post for more information: What happens if I don't square off my positions in options? - #2 by ShubhS9

3

OI…

4

How using OI? any explanation

5

Open Interest build will give you a idea about where option sellers are writing more.

6

Strike price with high call oi will act as a resistance …and the strike price with high put oi will act as a support…