Nifty Option Chain-Confusing or Predictive ?

[amitrandive]

Dear All

This is a snapshot of Nifty option chain on 4/12/2013.It is interesting to note that none of the options either calls or puts are positive.

Is this an indication of a flat market or a breakout on either side?

 

[kesk]

For the past 2 days all the PE/CE were +ve irrespective of the direction.

Around 11AM today, the premiums have shrunk and went back to the normal way of option behaving. The result is what we are seeing today.

We have been had and played by some really nasty characters in options.

 

[amitrandive]

Kesk

Thanks for the response

 

[whisky]

Market playing with premium only n looks side ways till elections result day to generate volume both sides. Real action will start with rumors n news on election results.

 

[rajat1389]

I bought 6100 PE at 100 and even nifty went down during last two days almost 50 points down since my purchase ,today its closing price is again 100.30.Though it went up to 110 during intraday but it is still too low and confusing movement.Where is SEBI and who regulates these options price??

 

[jagankris]

I bought 6100 PE at 100 and even nifty went down during last two days almost 50 points down since my purchase ,today its closing price is again 100.30.Though it went up to 110 during intraday but it is still too low and confusing movement.Where is SEBI and who regulates these options price??

SEBI cannot regulate the options price .

 

[jagankris]

Market playing with premium only n looks side ways till elections result day to generate volume both sides. Real action will start with rumors n news on election results.

I guess with exit polls already out if we see significant action tomorrow then there may not be any actually on coming Monday unless and otherwise the election results are drastically different from the exit poll predictions.

Else gap up/gap down on monday .

 

[rajat1389]

so then it should be intrinsic value + the time decay value + volatility.
Series has just started so first two factors must be major for calculating price of the option theoretically.There must be some board who checks on manipulation of premium value of options

 

[jagankris]

so then it should be intrinsic value + the time decay value + volatility.
Series has just started so first two factors must be major for calculating price of the option theoretically.There must be some board who checks on manipulation of premium value of options

In theory yes - "intrinsic value + the time decay value + volatility".
Your case it is OTM - so purely premium.
Usually when important events like elections,Quarterly results etc the premium tend to be very high.Once the event is over and direction established the other side tend to loose the premium significantly.

And you cannot claim that it is manipulation of option prices.
There is no board who checks on manipulation of premium value of options.

 

[amitrandive]

In theory yes - "intrinsic value + the time decay value + volatility".
Your case it is OTM - so purely premium.
Usually when important events like elections,Quarterly results etc the premium tend to be very high.Once the event is over and direction established the other side tend to loose the premium significantly.

And you cannot claim that it is manipulation of option prices.
There is no board who checks on manipulation of premium value of options.

Jagankris

Thanks for the explanation.These sort of things happen in the US markets too.

Is there any website where we can check the Historical volatility vs the Implied volatility? This should have been reflected in implied volatility.