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Why Bank Nifty option premium reduces ?
Why Bank Nifty option premium reduces ?
Replies (11)
Option premium reduces or enhances based on the bank nifty direction.
Need not decrease everytime
Need not decrease everytime
I mean to say even if the market doesn't move , option premium reducing by next day
That is due to time decay ( Theta : Option Greek)
Why it is decreasing gradually?
Options will be having expiry like weekly , monthly etc on every Thursday. So it is quite natural that the option premium falls when day closes the market at flat
Even if market closes with the previous closing, Why the premium is reducing?
Read the previous answers again and you may understand
Some times option premium is becoming zero on the last day
If the option goes out of the money then option premium can become zero
Old wine in new bottle...
Refer:: Bank Nifty Option Trading - Shares & Stock (caclubindia.com)
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