This is an archive for Capital Mind Premium subscribers, sent on Feb 8, 2014.
A number of options traders start taking positions and hold them too long, and then we have the uniquely Indian situation where options on expiry day could trade below even their intrinsic value! A holder of a Nifty 5,500 call might be surprised to find the option trading at Rs. 495 when the Nifty is at 6,000. This goes against all logic, because the option is supposed to at least have as much value as will be paid out if the option expired right now.
The rest of this content is only available to premium members.
Already a subscriber? Log in now!
Register for a premium membership today! Apart from this content you will get our proprietary research and weekly newsletter too!