Day Trading Futures

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3600 ce closed around 13 on friday, now its about 3.15, shouldnt the call price rise when there is a increase in spot price ?
hi
I am not an experienced trader..but according to my little knowlwdge, if spot price increase,it doesnt necessary that call prices should also increase...as volatility & other factors( days left in expiration etc) should also consider..
when call prices are at 13 ..volatilty must be high & now it must be decreasing...& days left are now also less
thanks
 

amitrandive

Well-Known Member
hi
I am not an experienced trader..but according to my little knowlwdge, if spot price increase,it doesnt necessary that call prices should also increase...as volatility & other factors( days left in expiration etc) should also consider..
when call prices are at 13 ..volatilty must be high & now it must be decreasing...& days left are now also less
thanks
Function of an extremely high value of IV pre event, going down rapidly post event.

I see a similar thing happening with Nifty next month.
Unusually high IVs for both CEs and PEs.
and how people exploit this ?

Explained very well in this post.

:thumb:
http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-409.html#post923869
 
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