Here is what I observed and wanted to share and know opinion of other traders.
I observed that for a particular scrip the spot changed about 1.5%. A good move.
The price of all the OTM call strikes changed accodingly, positive percentages, except one OTM call Strike. So, it made curious and I looked for a day before’s OI in that particular OTM strike.
This is what I observed
- It’s premium declined about 20% from previous day, on the contrary to all other strikes where premium went up
- I checked volume, volume was huge compared to previous day, but OI didn’t change much, it was marginal.
What I am missing here ?
- Did I miss something about theta, Vega ? What scenerio can lead up to this kind of unusual behaviour ?
- At first I thought it’s some kind of manipulation going on, but I want to be rational before making this judgement. What is your opinion ?