Question on Nifty Options Arbitrage

A

addy336

New Member
#1
#1
Hi All,
I am new to options trading. I was just going through the option chain and noticed the following. Deep OTM options seem to be mispriced for example for August series 9300 call (OI 400) is 2.3 and 9000 call is (OI 945k) 0.7. Clearly there is significant diff in OI so I can sell 9300 call and keep buying 9000 call till the prices stabilize.
My question is can any one tell me how many lots i'll be able to trade by this strategy, just a rough number.
Thnks
 
T

tradedatrend

Well-Known Member
#2
#2
addy336 said:
Hi All,
I am new to options trading. I was just going through the option chain and noticed the following. Deep OTM options seem to be mispriced for example for August series 9300 call (OI 400) is 2.3 and 9000 call is (OI 945k) 0.7. Clearly there is significant diff in OI so I can sell 9300 call and keep buying 9000 call till the prices stabilize.
My question is can any one tell me how many lots i'll be able to trade by this strategy, just a rough number.
Thnks
Click to expand...
In the Nifty 9300 CE, buyer is at 0.05 ps., and seller is at rs 3.

If you want to sell it at rs. 3, first you need to find a buyer at that price i.e. Rs. 3
 
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