Where is the time premium?

#1
Nifty 6300 PE on 28-12-2012, 31-Jan-2013 expiry is quoting at 358. Underlying is 5894.

Can someone please tell me, if at all there is any time premium in this option price?

-Green
 

aditya14

Well-Known Member
#5
Nifty Jan ka akhri price hai 5955
6300-5955 = 345

so TP is 13 rupees only ..... bhai aur bhi kayi cheezen hot hain options mai sirf TP ke peeche mat bhaago read up some greeks u will learnnnnn
 

comm4300

Well-Known Member
#6
Nifty Jan ka akhri price hai 5955
6300-5955 = 345

so TP is 13 rupees only ..... bhai aur bhi kayi cheezen hot hain options mai sirf TP ke peeche mat bhaago read up some greeks u will learnnnnn
Wrong.

Nifty Jan value is not taken into consideration.

Index is considered.

so, Nifty Index closing as on Friday is 5908
Strike = 6300
6300-5908 = 392. Intrinsic value.
Time value is = 0.
Premium = 341

looks like there is more "value" than one is paying for.

 

aditya14

Well-Known Member
#7
time value is never 0 yaar(theres 30 days to expiry) ITM options ka delta zada hota hai expiry ke time IV collapses aur future and index spot converge at same price and hence price is decided by future not spot check any expiry if spot goes up future stays in one spot last 30 mins......
 

aditya14

Well-Known Member
#8
there is however a 3 point discount 342 pe settle hua hai and price should be 345 but how can u take advantage of that u can`t since call and future is overpriced......
 

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