NIFTY OPTION REVIEW : Nifty 50 Option Chain Overview (May 8, 2025 Expiry)
Nifty 50 Option Chain Overview (May 8, 2025 Expiry)
| Strike Price | Option Type | Last Traded Price (₹) | Open Interest (OI) | Change in OI (%) | Volume (Contracts) |
|---|---|---|---|---|---|
| 24,200 | Call (CE) | 304.00 | 1,140,375 | -4.54 | 6,467,175 |
| 24,100 | Put (PE) | 173.60 | 1,373,700 | +0.23 | 6,467,175 |
🔹 Key Observations
- 24,200 CE: This call option has significant open interest, indicating it is a popular strike price among traders. The decrease in open interest suggests some unwinding of positions.
- 24,100 PE: The put option at this strike price shows a slight increase in open interest, implying a modest buildup of bearish positions.
- Spot Price Proximity: With the Nifty 50 spot price at ₹24,334.20, the 24,200 strike price is slightly in-the-money for call options and out-of-the-money for put options.
- Volume Analysis: High trading volumes in these contracts suggest active participation and potential for increased volatility as expiry approaches.
🔹 Market Sentiment Indicators
- Put-Call Ratio (PCR): A balanced PCR indicates neutral market sentiment, with neither bulls nor bears dominating.
- Implied Volatility (IV): Stable IV levels suggest that traders expect consistent market movement without significant spikes in volatility.
🔹 Technical Levels to Watch
- Resistance Levels: The Nifty 50 faces resistance around the 24,500–24,600 range.
- Support Levels: Key support is observed near 24,000 and 23,800 levels.
🔹 Strategy Recommendations
- For Bullish Outlook: Consider buying 24,200 CE if the index shows upward momentum.
- For Bearish Outlook: Buying 24,100 PE could be beneficial if the index starts to decline.
- For Neutral Outlook: A straddle strategy (buying both 24,200 CE and 24,100 PE) might be effective to capitalize on potential volatility.
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