Sir maine ek chija Notice kiya hu ki Nifty 50 ka ATM Strike Price ka Call / Put ka Premium around 150 Rupees rahata hai for Weekly Expiry starting from Friday.
Sir My Question Is :
Abhi do-teen mahine se Bahut Movement ho raha hai Market me Up/Down ,
Daily Basis par Nifty around 200/300 Points move ho jata hai around 1 to 1.5 %
Even Gap Up/Gap Down bhi kabhi kabar 100/ 200 Points ka ho jata hai
So by all this above Facts , Why Sellers of Call/Put of ATM Strike Price is taking around RS 150 Only ??
ATM Strike Price is 18,250
Therefore, 18250 * 0.85 % = Rs 155 [ Taking money less than 1 % of the up/down movement ]
??
Option pricing is mainly contain two parts
1. Time ka paise + uska khud ka value
So agar movement up/ down Jada hota h toh premium will increase but it doesn’t mean ki Kuch bhi hi jayega yaa sirf ek factor volatility effect option price
Option price are same for both buyers and sellers and generally sellers sell OTM call