Yesterday TCS Closed @ Rs 3860
3860 is an ATM Strike Price
Therefore 3860 Call is closed @ Rs 100 & 3860 Put is closed @ Rs 104
Today TCS gap up slightly above 3900
My Question is even though today gap us has happen , 3860 Call is trading @ Rs 110 & 3860 Put is trading @ Rs 58
Why Drastic Fall in the Premium ??
Options premium kai chijo pe depend karti h usme ak factor h IV ka TCS ke result ke karan iski IV kaphi jayada thi jiske karan premium bhi high the but result ke baad IV kaphi gir gya jaisa ki aap pic me dekh sakte h ….jiski wajah se premium me itni girawat aayi h…..
Okk Sir
But Results aane ke baad Up / Down movement aa sakta hai rapidly because of Good / Bad News , Toh phir IV kyu gira ??
IV toh badhana cahiye na because of the uncertainity in the movement of the Prices ??