Why does the Nifty sometimes go up while, at the same time, the price of call options is decreasing means, nifty candle make green same time price action make red candle its make only some time. please help me to understand this.
Why does the Nifty sometimes go up while, at the same time, the price of call options is decreasing?
Theta decay perhaps…
because the call writer is interested in writing the calls as they have a view that the spot price may not go up much or reversal may come. in short, they believe that up-move-in nifty is weak.
And if the expiry is near then theta decay is at work as well.
of course, there are many other factors you need to consider before placing the trade.
Options prices are calculated using multiple components. These are commonly referred to as Option Greeks.
While you are just focussing on Delta (the movement quotient), there are other important factors like theta, vega, gamma impacting the price of the option
You can learn more about these from zerodha varsity