Interesting Observations..

[jallanankit]

Well this thread is opened for all u guys to post ur observations in live market hrs..

The one which let me open a thread is...


NIFTY 5300 put quoting at 514 (1.46 pm) wheasas the intrinsic value should be Rs.507..

The time decay cost is just Rs. 7 when we have a full month left..

Nice time to write such puts..

Comment guys...!!

 

[rajsingh]

U expecting 5300 soon ?

 

[jallanankit]

U expecting 5300 soon ?

No 5300 PE.. I m talking abt mispricing..

It gives arbitrage opportunities..

 

[malunana]

NF is 4796 and 5000CE is 110.9. What do u see?

 

[jallanankit]

NF is 4796 and 5000CE is 110.9. What do u see?

My terminal shows 5000 CE at 70.. anyways it has approx 270 Rs. of time decay in it.. (thoeritical pricing model)

But I cannot find ways for arbitrage on it.. Do u..??

 

[malunana]

Sorry; the price refers to Oct 5000 CE

 

[jallanankit]

Sorry; the price refers to Oct 5000 CE

No prob dude...

Dont u find that way too cheap at the moment.. Coz u r getting an option without time decay.. and tht too for a whole month..

 

[malunana]

Yes; that is what I too meant. Will not the market recover to 5000 by Diwali?

 

[jallanankit]

Yes; that is what I too meant. Will not the market recover to 5000 by Diwali?

Well will the market not recover to Diwali..
How does it matter whether i say or not.. IT WILL BE MERE SPECULATION..

My purpose for starting this thread is to find out arbitrage opportunities because of mispriced options..

 

[malunana]

Sell NF Oct 4792 and buy 5000CE Oct at 108; is this a good move?