A Put Option trading cheap

Hi,

as of 16th Nov nifty is trading at 2810 levels.
Here is the price of 3 December Put options

EXPIRY Strike Price Premium Options volatility
25th Dec 2008 2700 219 77.68%
25th Dec 2008 2750 134.9 47.18%
25th Dec 2008 2800 262.35 75.73%

The 2750 Put is trading at a much cheaper price while compared to the other 2 Put Options.
is it due to low option specific volatility ?
so, is it trading much lower than it's fair value ?
In future, will the price increase and trade at par with the other put options mentioned above?
is it adviced to buy such options which trade strangely below it's expected value?

Thank you,
warm regards,

VIJAY

Nearly all option prices which fall BETWEEN two strike prices of 100 GAP have suspicious movements. Like 2750 pe 2750 ce etc.
I never trade in such options to be on safe side as contracts traded are less.

always trade 100s not 50s. trade 2600, 2800, 2700. not 2650, 2750...

Hi CB,How is ur PE doing?I have nacked CE 3000 at 45.What to do?

Bro , i booked some loss arnd 3-4 k in my PE. Bro exit that CE if its of NOV soon as time decay will hit it badly now. Sq off my PE for same reason.

I feel we may soon bounceback to 2800 zone , i feel that you should sq off ur CE then.
Dont trade in CURRENT month options after 20th.

Hi Guys,

I notice a huge difference in Jan 2009 ATM options.
currently nifty is @ 2700 levels.

JAN 2700 CE is @ Rs.501 but
JAN 2700 PE is @ Rs.249 only.

both options are at the money, but Why there is so much difference ?

Is there a strategy with which we shall benefit from this difference ?

warm regards,

VIJAY