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The Bank Nifty had ended marginally higher on Thursday. The Bank Nifty July contract gained 46 points to 26,483.90. The underlying value of the contract closed at 26,503.30. The Nifty Private Bank index had ended higher by 0.18 per cent, while the Nifty PSU Bank index had ended lower by 0.5 per cent.
Active call options of July 12 expiry
Among the call option chain, the In-The-Money Bank Nifty Call 26,400 option was the actively traded contract on Thursday. The option price closed at Rs 219, up by 3.45 per cent. The OI in the contract jumped by 15.55 per cent.
Traders have taken fresh long positions in the contract. The implied volatility was seen comparatively lower at 8.75 per cent. This confirms that the underlying Bank Nifty may encounter stiff resistance around 26,500 levels in the short term.
The Bank Nifty Call 26,700 option contract is currently an Out-Of-The Money option that turned very active on Thursday. The contract price edged lower by just 1 per cent and closed at Rs 88.50. OI in the contract saw over four-fold increase as traders have taken fresh positions here.
Interestingly, the option price did not move much despite there is a large rise in OI positions. The IV of the option price was at 10.25 per cent. This indicates that the underlying Bank Nifty is likely to meet strong resistance around 26,700 levels for the expiry.
Active put options of July 12 expiry
On the put option chain, the In-The-Money Bank Nifty Put 26,600 option contract was the most actively traded contract on Thursday. The put option price was down 17.10 per cent at Rs 228. However, the OI jumped 2225 per cent for this contract.
The implied volatility was comparatively higher at 14 per cent which implies that this contract price was expensive. Traders have bought this option contract expecting that the Bank Nifty to decline before the expiry. This confirms that the underlying may get traction around 26,300-26,350 levels in the short-term.
The Bank Nifty Out-Of-The-Money Put 26,400 strike price was one of the most actively traded contracts on Thursday. This Out-Of-The-Money put option price fell by 25.65 per cent to Rs 127.10.
OI in the counter zoomed 451 per cent. The IV of the option price was relatively higher at 13.25 per cent which suggests that the traders expect the underlying to decline. This suggests that the Bank Nifty underlying is likely to get support around 26,300 levels for the expiry.
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