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Domestic equities again came under fresh selling pressure on Thursday after the US Fed hiked the interest rates and struck a hawkish stance amid rising crude oil prices. Offloading of long bets in the F&O segment instead of carrying them forward to the October series dampened the domestic sentiment.
Bank Nifty September contract had ended down 322.45 points at 25,044.95. The underlying value of the contract closed at 25,042.15.
Active call options of Oct 4 expiry
Among the call option chain, the in-the-money Bank Nifty Call 25,000 option was the actively traded contract on Thursday. The option price closed at Rs 345, down by 40.65 per cent. Open interest jumped 41.15 per cent.
The implied volatility was seen sharply higher at 21.57 per cent. This confirms that the underlying Bank Nifty may encounter stiff resistance around 25,400 levels in the short term.
Bank Nifty Call 25,300 option contract is currently an out-of-the money option that turned very active on Thursday. The contract price slumped 52.25 per cent to Rs 176.95. Open interest saw an addition of 3.12 lakh shares.
The implied volatility of the option price was quite higher at 19.35 per cent. This indicates that the underlying Bank Nifty is likely to meet with strong resistance around 25,500-25,550 levels in this expiry.
Active put options of Oct 4 expiry
On the put option chain, the in-the-money Bank Nifty Put 25,200 option contract was the most actively traded contract on Thursday. The put option price ended higher by 23.50 per cent at Rs 294.50.
Open interest too jumped 336 per cent. The implied volatility of the option price was comparatively higher at 18.85 per cent which implies that the price was expensive.
Traders have bought this option contract expecting that the Bank Nifty to decline further. This confirms that the underlying may get traction around 24,900-25,000 levels in the short term.
Bank Nifty out-of the-money Put 24,800 strike price was one of the most actively traded contracts on Thursday. This out-of-the-money put option price fell 3.80 per cent to Rs 129. Open interest zoomed 562 per cent, witnessing an addition of 83,000 shares in the contract.
The IV of the option price was relatively higher at 17.98 per cent. This suggests that the Bank Nifty underlying is likely to get support around 24,700-24800 levels in the expiry.
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