Comment on STT Trap - Options Expiry - NSE BSE MCX-SX
commented on
13 Jul 2017, 11:32 PM
Finally the day has arrived and I’m also in same situation where everyone needs clarity.
Today, I don’t know how many has observed but it was very killing day of traders.
Coming straight to point, it was weekly Bank Nifty Expiry. Every time CE/PE price is ITM + Time premium discounted with probable STT. Today it was day of something surprise…BankNifty spot and future was hovering near 23875/900. 23900 CE showing only risk premium being OFM whereas to everyone surprise 23900 PE being ITM was showing less than Its even IV and less than CE and even less than in the value money forget time value of money premium.
23900 PE was brought to 0.05 very early without actually discovering market price and everyone who has purchased 23900 PE after 2.45PM they have made hell of money.