Hi friends,
I noticed something about the july mini-nifty futures over the last week. For most of the week it has been above the nifty by about 10 points. So if the Nifty was at 5300, the futures were trading at 5310.
Now normally ive noticed most futures trade at a slight discount to the nifty, which makes sense, if you take the interest cost of the arbitrage trade.
However suddenly at 3 o clock today, (options expiry for june series), it went from trading at a premium of 10 points to the standard of about a 6 point discount to the nifty. (which is what most futures trade at).
any idea why it was initially trading at a premium, and then suddenly changed to a discount?
I noticed something about the july mini-nifty futures over the last week. For most of the week it has been above the nifty by about 10 points. So if the Nifty was at 5300, the futures were trading at 5310.
Now normally ive noticed most futures trade at a slight discount to the nifty, which makes sense, if you take the interest cost of the arbitrage trade.
However suddenly at 3 o clock today, (options expiry for june series), it went from trading at a premium of 10 points to the standard of about a 6 point discount to the nifty. (which is what most futures trade at).
any idea why it was initially trading at a premium, and then suddenly changed to a discount?
