The Bank Nifty June futures had ended marginally higher on Wednesday on the back of positive IIP data. The Bank Nifty June 28 contract rose 35 points to end at 26,651.20. The underlying value of the contract closed at 26,642.80.

In line with the trend, the Nifty Private Bank index had closed in the positive territory with a gain of 0.1 per cent, while the Nifty PSU Bank index rose 1.48 per cent.

Active call options of June 28 expiry

Among the call option chain, the in-the-money Bank Nifty Call 26500 option turned very active. The option price closed at Rs 390.05, up by 2.35 per cent. However, the OI in the contract declined 1.38 per cent. This confirms that traders have shed some of their long positions in the contract as the prices were not moving up much. The implied volatility was seen at 11.38 per cent, which denotes that there is lesser demand at this price.

The Bank Nifty Call 27,000 option contract is currently an out-of-the money option that was very active on Wednesday. The contract price had edged up just 1 per cent to end at Rs 163.

The open interest too rose 2.35 per cent in tandem with the option price. The Implied Volatility of the option price was at 12.40 per cent which signifies that this option doesn’t attract much buying interest at these levels.

Overall, there is only modest buying in call options and traders were not committing to buy calls as of now.

Active put options of June 28 expiry

On the put option chain, the in-the-money Bank Nifty Put 27,000 option contract was the most actively traded contract on Wednesday. The put option price was down 9.15 per cent to close at Rs 495. However, the OI has improved by 3 per cent for this contract.

The Implied Volatility was comparatively higher at 16.55 per cent which implies that this contract price was expensive. Traders have bought this option contract at lower levels expecting that the Bank Nifty to decline further. 

The Bank Nifty out-of the-money put 26,500 strike price was more active on Wednesday. This out-of-the-money put option contract fell 12.65 per cent to Rs 241. The OI in the counter was up by 9.54 per cent. The IV of the option price was relatively higher at 16.45 per cent which suggests that the traders have a bearish outlook on Bank Nifty.

Traders have taken fresh positions in this contract implying that the Bank Nifty underlying may fall below 26,500 levels before the month expiry.