So, Ideally (Theoretically) I have to purchase that option (5400 PE OR 5500 PE) and hedge against nifty i.e. buy the nifty (I think You have made Typo)and ultimately square off both the position after 2-3 days, and MAKE GAINS DUE TO MIS-PRICING.
But...
IMO, 5400 PE or 5500 PE does not enjoy as much liquidity as other strike price option which are nearer to current price.
and hence you can't get opportunity to sell the option after buying one ( you need buyer for that, If you get, he will be demanding as I am(i.e. without time value))and ultimately you have to exercise the option at the month end, and at month end you will not get TIME VALUE OF OPTION.
So, Things not working IMO.
What's your view??