F&O rocker of the day: National Aluminium options IV explodes & 90 CE option witness over twofold jump in price

July series future has seen a massive open interest addition of 11.88 per cent and theoretically, its price rise along with the rise in the open interest indicates a long built-up.

Nifty scaled to fresh all-time highs during today’s morning session but soon after opening, the bulls lost their control as bears overtook the charge and dragged Nifty down.  

Currently, Nifty is almost 90 points down from the highs of the day and is seen trading near the lows of the day. Despite high volatility, which is seen in the markets today, only one sector is buzzing on the bourses and that is Nifty Metal. It surged 1.16 per cent and it is now the top-performing sector.   

Around 11 out of 14 Nifty Metal constituents were seen trading in green with National Aluminium Company emerging as the top gainer. The stock of National Aluminium Company has jumped nearly 6.7 per cent in otherwise a wobbly market. July series future has seen a massive open interest addition of 11.88 per cent and theoretically, its price rise along with the rise in the open interest indicates a long built-up.    

On the options’ front, the 90 strike price Call option has seen an enormous jump i.e. twofold rise in its price, while open interest jumped 1,478.12 per cent. Most importantly, the implied volatility (IV) has soared over 10 per cent. The 85 strike price Call option has also seen a significant jump in its IV as it surged nearly 7.29 per cent and price also advanced more than 150 per cent with open interest addition of 256.08 per cent. The 80 Call options, where the maximum concentration of open interest is seen, its price gained over 100 per cent while IV also spiked more than 5 per cent.