Why Nifty Weekly Expiry Is Above 24500 Levels

Option Selling is one of the most widely used approaches in derivatives trading. While option buyers look for a significant directional move to generate profits, option sellers often focus on time decay, volatility contraction, and the probability that the underlying asset will remain within a certain range.

Nifty started the week from 24600 levels, and according to option premium, the upper range was 24800, and the lower range was 24200 levels for the week. So 24500 becomes the mean strike for the week, and the 24500 Call strike traded above 250 levels, and the 24500 Put strike traded below 90, so this makes the expiry to be above 24500.

Nifty 24500 Put strike on Wednesday opened below 90 and went up to 140 intraday and then closed at 90 levels, and till now couldn’t trade above 90 levels, so this shows that market makers are holding 24500 as a strong support zone, and below you can see the intraday fall in option premium and rise in open interest where sellers are strongly commanding at these levels.