Movement of Options

An option price increases or decreases with relevance to Nifty Spot Price. In a rising market, call option price increases where as a put option price decreases. Viceversa is true in a falling market.

For example:



Points to Note:

At the time of initiating an option trade, both of them are in the money. But when market rises, Call remains "In the Money". But Put option goes out of Money.

Similarly in a falling market, Call goes out of the money and Put remains in the Money