Comments
The Bank Nifty index ended almost flat on Monday ahead of the June derivative contract expiry this Thursday. The Bank Nifty June futures contract has ended lower by 9 points at 26600 while the underlying value of the contract closed at 26601.70.
Active Call Options of June 28 expiry
Among the call option chain the In The money Bank Nifty Call 26600 option was the actively traded contract on Tuesday. The option price was down 22 per cent to close at Rs 118. However, the OI in the contract has risen 37.80 per cent which confirms that traders have taken fresh positions in the contract. The implied volatility was moderate at 14.16%. It is an indication that the underlying Bank Nifty is likely to face resistance around 26700 levels in the short-term.
The Bank Nifty Call 26700 option contract is currently an out of the Money option. The option price declined 27% at Rs 78.60 on Tuesday. However, the OI in the contract rose 34.70% with the IV at 14.75%. Traders have taken fresh long positions in this contract with the option price turning cheaper. Hence, the underlying Bank Nifty may encounter resistance around 26700-26800 levels in case of any volatility before the expiry.
Active Put Options of June 28 expiry
On the put option chain, on Tuesday the in the money Bank Nifty Put 26700 option contract saw maximum pruning of contract positions ahead of the June contract expiry. The OI has sharply declined by 26.75%. The put option price too was down 9.65 per cent to close at Rs 171. The implied volatility was relatively higher at 15.85 per cent. This confirms that the underlying Bank Nifty may decline below 26500 levels in the short term.
The out of the money Bank Nifty Put 26400 contract saw moderate buying interest in Tuesday’s trading session. This put option price has declined 31.19 per cent to Rs 46.10, while the OI in the contract rose by 17.15 per cent. The implied volatility of the option price was at 16% indicating that the underlying is likely to get support around 26300 levels this month.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.