NIFTY Options trade : Why and what-if...

[anayash]

Though Nifty is falling why Nifty PE 4600 Nov24, is not rising?

4600 is way far off buddy....with 9 days left for expiry...how do you expect a movement in the PE?

 

[adityasaraf007]

Though Nifty is falling why Nifty PE 4600 Nov24, is not rising?

Nov 24 is just 7 trading sessions away and for Nifty to reach 4600 it has to fall around 10% from here..... Are you expecting a Down Circuit .....

As far as my understanding is concerned.... the further the Strike Price is.... the faster the Time Decay during the last two weeks..... And the chances of 4600 PE to become ITM is very small..... So, why would anyone pay more to buy it.... ????

Consider yourself.... Tomorrow would you pay more to buy that 4600 PE????

Linkon Sir.... Hope my understanding is correct..... Otherwise please correct me

 

[linkon7]

Nov 24 is just 7 trading sessions away and for Nifty to reach 4600 it has to fall around 10% from here..... Are you expecting a Down Circuit .....

As far as my understanding is concerned.... the further the Strike Price is.... the faster the Time Decay during the last two weeks..... And the chances of 4600 PE to become ITM is very small..... So, why would anyone pay more to buy it.... ????

Consider yourself.... Tomorrow would you pay more to buy that 4600 PE????

Linkon Sir.... Hope my understanding is correct..... Otherwise please correct me

when the market decides to take a sharp move in one direction... those OTM puts show sudden life...opportunity is in shorting them...! since probability of that strike hitting is low...!

 

[ushasunil]

Nov 24 is just 7 trading sessions away and for Nifty to reach 4600 it has to fall around 10% from here..... Are you expecting a Down Circuit .....

As far as my understanding is concerned.... the further the Strike Price is.... the faster the Time Decay during the last two weeks..... And the chances of 4600 PE to become ITM is very small..... So, why would anyone pay more to buy it.... ????

Consider yourself.... Tomorrow would you pay more to buy that 4600 PE????

Linkon Sir.... Hope my understanding is correct..... Otherwise please correct me

I know I have done a mistake Bought it at Rs.41 last month (tip) I was aware it is bad to take tip but still I took that tip to cover a mess already I made before which I had taken from previous tip (DLF 200 PE). He said we could cover it up with this call. Now nearing drawdown.. Wish I might have spent that money on buying softwares like ami and meta, and learnt TA myself instead of believing someone. Thanks everyone for the reply.

 

[Bigbear]

when the market decides to take a sharp move in one direction... those OTM puts show sudden life...opportunity is in shorting them...! since probability of that strike hitting is low...!

Bhai,

Just like today?? 5100CE shows sudden life, i mean 98% OI addition..

So What you mean to tell is opportunity is low of hitting 5100 again? So what you say is short them??

I wont be taking the trade, i would like to keep it under study .

 

[trader.trends]

Bhai,

Just like today?? 5100CE shows sudden life, i mean 98% OI addition..

So What you mean to tell is opportunity is low of hitting 5100 again? So what you say is short them??

I wont be taking the trade, i would like to keep it under study .

Bigbear, Linkon mentioned the less probability of hitting of strike price of 4600 which is 10% away. 5100 is just 1% away from CMP. It is not just about IO addition. It is also the distance from the CMP. Shorting 5100 Ce would be more risky than shorting 4600pe.

 

[linkon7]

Bigbear, Linkon mentioned the less probability of hitting of strike price of 4600 which is 10% away. 5100 is just 1% away from CMP. It is not just about IO addition. It is also the distance from the CMP. Shorting 5100 Ce would be more risky than shorting 4600pe.

bang on...!

 

[Bigbear]

Bigbear, Linkon mentioned the less probability of hitting of strike price of 4600 which is 10% away. 5100 is just 1% away from CMP. It is not just about IO addition. It is also the distance from the CMP. Shorting 5100 Ce would be more risky than shorting 4600pe.

Thanks bro, i might have misread.. got little confused.. that's why drama with charts and all...

 

[columbus]

CE options 5400,5300,5200 saw lot of erosion 48%,39% and 25%.
PE options 4900 saw 22% erosion.PE options appear to go strong.

In fact during intraday CE options lost more than 50% one time and
all PE on strong +ve side.

 

[timepass]

CE options 5400,5300,5200 saw lot of erosion 48%,39% and 25%.
PE options 4900 saw 22% erosion.PE options appear to go strong.

In fact during intraday CE options lost more than 50% one time and
all PE on strong +ve side.

On the contrary, 5000 & 5100 CE have shown much less erosion compared to 5000 & 4900 PE. 5000 PE should've strengthened because of the 38 pts downturn.

The guys who know the greeks will be able to explain it better. Where art thou, Dan ??