Bank Nifty had ended in the red on Monday owing to weak global cues on persisting US-China trade war fears. The Bank Nifty June futures contract had ended lower by 109.65 points at 26,240 on Monday. The underlying value of the contract closed at 26,230.30. The Bank Nifty futures closed at a 10-point discount to the underlying value.

 

Call Option of July 26 expiry

Among the call option chain, the in-the-money Bank Nifty Call 26,200 option witnessed some brisk trading on Monday. The option price fell 15.50 per cent to Rs 410.65. However, the OI in the contract has increased by 104 per cent.

The implied volatility of the option price was relatively lower at 11.18 per cent. It is an indication that with the addition in the OI, the Bank Nifty is likely to face stiff resistance around 26,600 levels in case the underlying rallies higher from yesterday’s closing levels.

The Bank Nifty Call 26,500 option contract is currently an out-of-the-money option that was actively traded one on Monday. The OI in the contract has increased by 4 per cent, while the option price was down by 18 per cent at Rs 269.50.

The IV of the option price was comparatively lower at 11.70 per cent. This indicates that the Bank Nifty may encounter resistance around 26,600-26,700 levels in case of an upside.

 

Put Option of July 26 expiry

On the put option chain, the in-the-money Bank Nifty Put 26,500 option contract turned active on Monday. The put option price was up 9.35% at Rs 522.25. The option price witnessed an intraday high of Rs 641 before closing at Rs 522.25. The Implied Volatility of the price was higher at 17.60 per cent indicating that the option price was expensive.

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