Why 37 POINT DIFFRENCE FOR ITM options, even 1 day is remaning for expiration?

Bank nifty spot- 25184
25500 PE options-279 ( sorry by mistake i mention 25000 previously)

25184+279=25463 ( 37 point diffrence)

why 37 POINT DIFFRENCE FOR ITM options, even 1 day is remaning for expiration?


Because the strike you chose is 25500 (and not 25000) which is Deep ITM.
The Options Seller of 25500 PE estimates that the expiry would be around 25500 less 279, i.e. 25221.
Clue for you: Max Pain of Bank Nifty is at 25300 as of closing today.

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SAME distance DEEP ITM call option of 24900 trade at 310


24900+310=24220

and close is 25184…thus appod 40 point is time value…But on same size of DEEP ITM put options has nagative 40 value… why is it so?

Am i missing something?

Or there is some psychological explanation for same? or can i do my trade set up based on same?

The pricing of options is based on various factors and estimated spot price of the underlying at expiry.

This coincides with the max pain I have given earlier, isn’t it?

Because if the Spot is expiring at 25300, the 24900 Put strike will expire worthless, so the premium is lower.

But which side of the trade you wish to take!?

I suggest you read Options module on Varsity if you haven’t done it yet.
https://zerodha.com/varsity/module/option-theory/

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thanks for prompt replay…

Thanks