Why Nifty options having strike price ending with 50(ex: 8350,8450) have so low volumes as compared to Strikes ending with 100(ex: 8300,8400,8500)?
Also, many times, Nifty options with Strikes ending with 50 have terrible price discovery. Is there any particular reason for this?
I dont know, but even I think Nifty options in terms of 100s whenever I trade options. 100s seem to be a good resistance point than 50. In 50’s range Nifty easily crosses the boundary than 100.
Also for small stocks around 300 price range I think only in terms of 10s and not 5s.
So the answer is mostly human perception and resistance and support strengths, I believe.
The strike prices at 50 were re-introduced on Nifty after having been removed for a few years. From the time it has been reintroduced, it hasn’t really taken off, people who were used to trading the strikes at 100’s haven’t shifted their business to the new strikes. So yeah, I guess that is why the liquidity has never picked up at those strikes.
Because Big Players (FIIs) (Mostly Option Sellers) mostly prefer strikes ending with 00 … and if they are not prefering strikes ending 50… Retailers like me and u cant affect the volumes at those strike prices 
as simple as that
Can you please tell us how you came to this conclusion about FIIs preference for strikes ending in 00
Count me too! Even I am curious to know!