Dear llango sir, DR sir or our blog option expert sanjay sir or my JN matesKindly make me understand the following:- why nifty 6000 PE and 6100 PE are clsoed below their intrinsic value ( there is no time value left) respectively closed at 103 and 180 while the nifty spot is closed at 5888.as per option terminology 6100 PE should be above 212 and 5900 PE should be above 112.Am i right ?Is there any specific reason?Thanku
Dear Ilango Ji,Referring to your earlier comment on "sell on rises when price closes below DHEMA".What is the negation point of this sell on rises ? Is it until price closes above DHEMA ? Or can I say "buy on dips" until price closes below DLEMA ? Is there any difference between the two ?Thanks-in-advance.Regards,
@varun kumar,it is indicating put writers confidence !!
Hi varun,When nifty future is continuoysly trading at a premium ( 40 -42 pts today), it can happen that the in the money Put may trade below the intrinsic value, when you compare the Strike price Vs Nifty spot. Though normally the value of Puts and calls should be based on the spot price, I have notice in India some how it is based on the furure price. Also many hedging strategies are execute using NF levels by algos and FII, hence this mispriceing.however if you follow the puts prices vs Nf pirce, you would notice they move in alignment
Namaste Ilango Sir & Blogmates, Bullish to Neutral: Range bound day, but the CE writers are finally coming back with 6000 level now out of bounds for the Bulls…: Option Analysis for 12-12-2012Dedicated Option Open Interest BlogDuplicated at Wordpress SiteThanks & Regards,Sanjay Kr Jaiswal
@Varun,@Chetas has interpreted the your question perfectly and given the best possible answer. Yes in India, the option price are based on NF.
Good Evening Sir, and all My Gems of JN
Friends Nifty sell on rises continues with minor changes in EOD.Thursday 6th Dec NIFTY CLOSE 5930.90 HOUR SUPPORT RESISTACE CHANNEL 5916-5907-5898-5894-5883-5855 closed above hour support resistance channel.Friday 7th DEC NIFTY CLOSE 5907.40 HOUR SUPPORT RESISTANCE CHANNEL 5885-5896-5900-5907-5913-5919 closed in between.Monday 10 DECNIFTY CLOSE 5908.90 DAY PIVOT 5906 HOUR SUPPORT RESISTANCE CHANNEL 5897-5901-5908-5912-5916closed in between. Tuesday 11 DEC NIFTY CLOSE 5898.80 DAY PIVOT 5910 HOUR SUPPORT RESISTANCE CHANNEL 5899-5900-5912closed below. Wednesday 12DECNIFTY CLOSE 5888 DAY PIVOT 5896 HOUR SUPPORT RESISTANCE CHANNEL 5888-5893-5899-5901-5907CLOSED BELOWMinor changes 5907-5888 20 points I am interpreting it with Hour candles. regds
In above check the high Nifty made then also closing below or inbetween hour trend lines from Friday to Wednesday.regds
5949.85 Friday5919.95 Monday5965.15 Tuesday5924.6 Wednesday
@ Chetas & Sanjay sir,Thanku very much for guidance
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