Hi everyone,

I have a doubt in options, if you see nifty option August contract both in call and put, for the strike price 10050,10150,9050,.. the whole day trade value and the buyers, sellers are low when compare to the strike price of whole number i.e 10000,10100,12000,9000,.. why so?

will it affect the trade ? should i avoid the mid range like 10050,9050,..

Hope someone will clear my doubt.

thanks in advance.

2 Comments
  1. EQSIS 7 years ago

    Very good observation,

    The Options are liquid where the strike price is nearer to the spot price. Meanwhile the round number get the trader interest.

    Imagine, we tend to say 10000 as support not 10050.

    While selling a stock we aim for 10000 not 9950. The round number has some psychology relevance to get traders interest.

    I hope this may not impact the trader as long as it near month contract and nearer to the strike price

  2. Author
    kishore 7 years ago

    thank you….

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