hi sir @yesterday nifty 12700 ce was @ 130 while closing AND today market opened @ 12823 but 12700 ce was only @ 140 why?
This can usually happen due to drop in Implied Volatility and also Theta decay, as Option nears it’s expiry date they generally start losing Time Value.
For better understanding of how Greeks affect Option prices, you should read this module on Varsity.
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hi sir can you explain me what is underlying asset for value of nifty’s call and put option
does it nifty 50 or nifty FUT?
if we see on sensibull option chain it shows nifty fut
and nse india shows nifty …so its quite confusing plz if possible explain
Its nifty50 always.
Regarding price issue of 12700, sometimes when market direction is expected bullish or bearish, whatever, the options becomes costly in the sense they are traded at higher value more than the actual. Secondly, when a option is traded less in other words have less volume and volatility than this scenario can happen.
For F&O based on Nifty, underlying is Nifty but here’s an interesting things, if Futures is trading at big premium or discount to spot, Options generally tend to follow the Futures that is why Sensibull shows Futures price, though upon expiry both Futures and Options are settled according to closing price of the underlying.
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Hi sir
Q1.) Today’s Nifty 50 and Future has difference almost 60 points.
If we want buy options or sell options… what underlying vale should we look?
2.)
Today Nifty 50 closed@ 3.30 pm…@ 12941
And later settled to 12968
Almost 27 points increased… and difference between Nifty n it’s Fut reduced to 30
How this works can you please explain.?
- Bcz of such confusing scenario…at the end it seems very risky to buy or sell
I am attaching screenshot please have a look and explain me if possible…
Eagerly waiting for your response
The Futures and underlying can diverge due to volatility, it is normal.
The closing price which you see at 3:30 is LTP (Last Traded Price), exchange later adjusts closing price to Weighted Average Price of last 30 minutes and this can vary from LTP you see at 3:30.
If you want to know how WAP is calculated you can read this post.
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