It is obvious question whether option seller win the battle or buyer?
As on 23rd May 2019 becomes memorable Day for Stock Market investor due to Stable government came in the power with majority seat. It is very Important to study the how option pricing behave today as on event day.....
Brief Movement of nifty as on 23rd May 2019.....
Nifty close on 22nd May was 11738 and Open next day at 11901 with almost 165 point Up made High of 120141 i.e. almost 300 Point Up from previous Close and made Low of 11614 and close at 11657 with almost 80 point Down from previous Close.
Lets see Option Changes of Call and put As on 23rd May 2019 and How much change Came to Pricing.....
Call Option Chain As On 23rd May 2019.....
From the Above Table one can study that option price came down from 50% to 450%, From data of 20 Strike from 11000 to 12000 call value of 12000 call came down almost 450% from previous day. The seller made huge Money by shorting Option as 225 rate becomes only 40 Rs. By the end of day.
One can see most of call option fall almost 200-300% from open rate. As uncertainty was much due to election and by the election result volatility fallen from 28% to 20% almost 40% down in a day.
This is the huge event for option trader where lot of money mint by many option seller and at the end of game generally Option seller win the battle.
Read the previous election movement and option pricing analysis here.....
Lets Look into Put Option outlook by studying Option chain....
Here, Option of Put Table is prepare from strike of 11000 to 12000 and almost all option close with change of 5% to 350% down in premium.
From this chain 11100 Put close 350% down from open rate. The seller made Huge money by shorting Both Call and Put. Nifty Reported almost 450 point move in a day.
A trader Who shorted option of 11900-12000 Call and 11200-11100 Put made Huge money in Intraday only. As election vote Counting Started at 8 AM and In initial 1:30 Hours almost NDA reached needed Seat and Outlook was much clear to form Stable government.
Even After 10 Am person shorted call and Put made huge Money as almost clarity was seen by result of counting. It was excellent opportunity for option trader to mint money.
Now, Nifty Straddle is almost 260 point by taking 11650 call and put option total. It shows almost 2.5% expected movement in nifty in this week. It was 670 point at 11750 on 22nd May 2019 almost 5.7%. As volatility came down almost 40% in a day.
Learn identifying Max pain for option seller by learning this method at Max Pain theory and download calculator of it Here one can easily identify which strike to short.
Today was day of option seller made lot of money in index and stock option.
Thanks
Derivativelearn.
As on 23rd May 2019 becomes memorable Day for Stock Market investor due to Stable government came in the power with majority seat. It is very Important to study the how option pricing behave today as on event day.....
Brief Movement of nifty as on 23rd May 2019.....
Lets see Option Changes of Call and put As on 23rd May 2019 and How much change Came to Pricing.....
Call Option Chain As On 23rd May 2019.....
From the Above Table one can study that option price came down from 50% to 450%, From data of 20 Strike from 11000 to 12000 call value of 12000 call came down almost 450% from previous day. The seller made huge Money by shorting Option as 225 rate becomes only 40 Rs. By the end of day.
One can see most of call option fall almost 200-300% from open rate. As uncertainty was much due to election and by the election result volatility fallen from 28% to 20% almost 40% down in a day.
This is the huge event for option trader where lot of money mint by many option seller and at the end of game generally Option seller win the battle.
Read the previous election movement and option pricing analysis here.....
Lets Look into Put Option outlook by studying Option chain....
Here, Option of Put Table is prepare from strike of 11000 to 12000 and almost all option close with change of 5% to 350% down in premium.
From this chain 11100 Put close 350% down from open rate. The seller made Huge money by shorting Both Call and Put. Nifty Reported almost 450 point move in a day.
A trader Who shorted option of 11900-12000 Call and 11200-11100 Put made Huge money in Intraday only. As election vote Counting Started at 8 AM and In initial 1:30 Hours almost NDA reached needed Seat and Outlook was much clear to form Stable government.
Even After 10 Am person shorted call and Put made huge Money as almost clarity was seen by result of counting. It was excellent opportunity for option trader to mint money.
Now, Nifty Straddle is almost 260 point by taking 11650 call and put option total. It shows almost 2.5% expected movement in nifty in this week. It was 670 point at 11750 on 22nd May 2019 almost 5.7%. As volatility came down almost 40% in a day.
Learn identifying Max pain for option seller by learning this method at Max Pain theory and download calculator of it Here one can easily identify which strike to short.
Today was day of option seller made lot of money in index and stock option.
Thanks
Derivativelearn.
0 Comments