Markets

Bank Nifty Put options trade active

Madhavan M.J | Updated on July 26, 2018 Published on July 26, 2018

Index likely to move up on the expiry day

Bank Nifty index had ended flat on Wednesday as traders turned cautious ahead of the July derivatives expiry today. Bank Nifty July contract had closed at 27,034.50.

Sectoral indices related to Bank Nifty had also ended flat. Nifty PSU Bank index ended up 39.90 points or 1.40 per cent at 2,935.85 levels, while the Nifty PVT Bank index edged lower by 5.65 points to 15,244.55 levels.

 

Active call options of July 26 expiry

Among the call option chain, the In-The-Money Bank Nifty Call 26,900 option was the actively traded contract on Wednesday. The option price closed at Rs 168.10, down by Rs 27 or 13.80 per cent. Similarly, open interest in the contract too declined by 25.20 per cent.

Traders have reduced their long-call positions in the contract as the July futures contract is expiring today. The implied volatility of the option price was at 14.30 per cent. This confirms that the underlying Bank Nifty is likely to move above 27,100 levels on the last day of the expiry.

Bank Nifty Call 27,200 option contract is currently an Out Of-The-Money option that turned very active on Wednesday. The call option price closed down by 50 per cent at Rs 29.50.

Interestingly, the contract’s OI increased by 14.15 per cent. The IV of the option price was comparatively higher at 15.45 per cent which signifies that there was good demand at these price levels. The underlying Bank Nifty index may encounter strong resistance around 27,250 levels for this expiry.

 

Active put options of July 26 expiry

On the put option chain, the In-The-Money Bank Nifty Put 27,100 option contract had turned active on Wednesday. The put option price had closed down 24 per cent at Rs 112.80. OI jumped by 42.15 per cent.

The implied volatility of the option price was at 13.90 per cent. This confirms that the underlying Bank Nifty is likely to get support around 27,000 levels in this expiry.

Bank Nifty Out-Of-The-Money Put 26,900 strike was another actively traded contract on Wednesday. This Out-Of-The-Money put option price ended lower by 41 per cent at Rs 38.

OI in the counter has jumped by 49.15 per cent. The IV of the option price was relatively higher at 16.15 per cent which implies that this option price was in keen demand. This confirms that the Bank Nifty underlying may get support around 26,850-26,900 levels in this expiry.

Published on July 26, 2018
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