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Stock markets were closed yesterday on account of Bakrid. The Bank Nifty index closed lower by 16.35 points at 28,257.90 on Tuesday. The Bank Nifty August futures contract had declined by 42.45 points to 28,289 on Tuesday.
Active call options of August 30 expiry
Among the call option chain, the In-The-Money Bank Nifty Call 28,200 option was the actively traded contract on Tuesday. The option price closed at Rs 258.80, down by 15.20 per cent. However, open interest increased by 18 per cent.
Traders have bought some long-call positions in the contract as the option price fell in line with the decline in the underlying index. The implied volatility was at 10.66 per cent. This confirms that the underlying Bank Nifty may face stiff resistance around 28,450-28,500 levels.
The Bank Nifty Call 28,400 option contract is currently an Out-Of-The-Money option that turned very active for this expiry. The call option price was down by 19.33 per cent at Rs 158.20.
Interestingly, OI rose 72.70 per cent. The IV of the option price was at 10.85 per cent. Since there was sizeable addition of OI at this call strike price, the underlying Bank Nifty index may encounter strong resistance around 28,500-28,550 levels for this expiry in case of an upside move.
Active put options of August 30 expiry
On the put option chain, the In-The-Money Bank Nifty Put 28,400 option contract turned active on Tuesday. The put option price gained 4.50 per cent and ended at Rs 269.25. OI increased by 16.25 per cent.
The implied volatility was comparatively higher at 13.05 per cent which implies that this contract price was in demand. This confirms that the underlying Bank Nifty is likely to get support around 28,100 levels in the short term.
The Bank Nifty Out-Of-The-Money Put 28,000 contract was the main focus of traders’ attention on Tuesday. This Out-Of-The-Money put option price shed 5.35 per cent to Rs 108.50. OI gained 12.90 per cent.
The IV of the option price was comparatively higher at 13.50 per cent which implies that this option price was in keen demand. This confirms that the Bank Nifty underlying may get support around 28,000 levels in this expiry.
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