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
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