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The Bank Nifty July futures surged on Monday as a strengthening rupee bolstered the sentiment for banking stocks. The Bank Nifty July 26 contract climbed 209.60 points and closed at 26710. The underlying value of the contract closed at 26,753.30.
Active call options of July 26 expiry
Among the call option chain the In-The-money Bank Nifty Call 26500 option was the actively traded contract on Monday. The option price closed at Rs 415.80, up by Rs 89.95 or 27.60 per cent. However, the OI in the contract was down by 12.75 per cent. The implied volatility was comparatively lower at 7.12 per cent. This confirms that the underlying Bank Nifty is likely to move above 26900 levels in the short term.
The Bank Nifty Call 27000 option contract is currently an Out Of The Money option that turned active on Monday. The contract price was up by 30.27 per cent to end at Rs 162.90. The contract’s OI was down by 7.90 per cent. The IV of the option price was at 9.45 per cent which signifies that this option is not expensive. The underlying Bank Nifty index may move beyond 27100 levels on continued rally upwards for this expiry.
Active put options of July 26 expiry
On the put option chain, the in-the-money Bank Nifty Put 27000 option contract was traded stronger on Monday. The put option price lost Rs 163.65 or 26.65 per cent and ended at Rs 450. The OI was shed by 26.35 per cent for this contract. The implied volatility was comparatively higher at 16.75 per cent which implies that there is a good demand for this contract price. Hence, the underlying Bank Nifty is likely to get support around 26400 levels in case of reversal from the upward move.
The Bank Nifty Out-of the-money Put 26500 contract was the main focus of traders’ attention on Monday. This out of the money put option contract declined 35.38 per cent and closed at Rs 210.50. The OI in the counter has jumped by 20 per cent. The IV of the option price was relatively higher at 16.11 per cent which suggests that this option price was in keen demand. Hence, it implies that the Bank Nifty underlying may get support around 26250-26300 levels in case of correction in the underlying index.
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