why there is NIFTY 5900 PE 27-sept-2012 option in NSE OPTION INDEX?
Let me explain why I raised this question ..
We know current NIFTY spot is 5,386.70 (As on 24-Aug-2012) ....Also we know people normally buy PE options thinking that index will go down....However I find the above 27-sept-2012 PE option has a very high strike price i.e 5900 and this is above spot price ..I'm sure PE buyers are not going to buy this option because they have bearish mindset about markets....then who will buy such options ? This looks unrealistic
Let me explain why I raised this question ..
We know current NIFTY spot is 5,386.70 (As on 24-Aug-2012) ....Also we know people normally buy PE options thinking that index will go down....However I find the above 27-sept-2012 PE option has a very high strike price i.e 5900 and this is above spot price ..I'm sure PE buyers are not going to buy this option because they have bearish mindset about markets....then who will buy such options ? This looks unrealistic
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