00:00Have you ever wondered when normal continuous trading of Nifty sports gets stopped after 3-15 pm?
00:06If so, why is there still so much movement in the premium of calls and puts?
00:10Sometimes the premium goes up and sometimes it comes down but the question is that when the normal trading of esports
00:18If there is a bond, then on what basis is this movement taking place?
00:22Under the regulatory framework of SEBI, NC has implemented Closing Option Session (CS) in the equity segment.
00:31After this, at 3.15 pm, transaction takes place in CS through normal continuous trading and CS is 3.15
00:38Runs from 3.35 pm onwards
00:40So the question then is how do we understand the premium movement of calls and puts after 3.15?
00:46can
00:47I observed an interesting thing on Zerodha that might help us understand this behavior.
00:54Is
00:54Let me clarify one thing here, I have made this observation only on Zerodha.
00:59I don't know if it appears exactly the same on other brokers' platforms.
01:06gives
01:06If you have observed this with any other broker apart from Zerodha, please let us know in the comments.
01:13Now watch my actual recording carefully.
01:17First, consider 15.23.
01:20Here the indicative closing is seen around 23,969.35
01:25Then at 15.24 it becomes around 23,954.35
01:3115 divided by 25 is approximately 23,945.45
01:35And at 3:26, it was around 23,929.35
01:39At 3:27 it will be 23,929.25 and at 3:29 it will be 23,913.35
01:46Used to be
01:46That is, you can see that as time progresses
01:49The value of the indicative close is also changing
02:01One thing may need to be kept in mind here
02:02Consider this as normal continuous trading session of Nifty Esports
02:06Now the most interesting question
02:09Can we understand the behavior of call and put premiums by looking at this indicative close?
02:15This can definitely be seen as a reference and observation.
02:19But this should not be taken as a direct trading signal.
02:23Because option premium does not move only with the direction of Nifty
02:26But many factors like delta, theta, IV and demand supply also affect the premium.
02:33So how is the indicative close changing after 3.15?
02:37And how are the call and put premium behaving at the same time
02:40By observing this together, we can try to better time the premium behavior around expiry.
02:47And if you have observed this with any other broker other than Zarudha
02:52So please tell us in the comments.
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