Hello. Options noob here. Today I paper traded the following strategy:
-1 NIFTY 9000 PE - Rs. 129.00
-1 NIFTY 9000 CE - Rs. 132.90
Spot price at the time of initiation of trade : 9013.00
When the underlying breached 9000 from above, the premium of 9000 PE increased to 139 and at the same time, the 9000 CE decreased to 127 only.
Why did the premium of the put option increase much more as compared to the call option? Is it because the put option went in the money and thus had both intrinsic and extrinsic value or is there some other reason?
-1 NIFTY 9000 PE - Rs. 129.00
-1 NIFTY 9000 CE - Rs. 132.90
Spot price at the time of initiation of trade : 9013.00
When the underlying breached 9000 from above, the premium of 9000 PE increased to 139 and at the same time, the 9000 CE decreased to 127 only.
Why did the premium of the put option increase much more as compared to the call option? Is it because the put option went in the money and thus had both intrinsic and extrinsic value or is there some other reason?