Why is there no price movement in the stock’s option contracts when the price of the stock and its futures contract is moving?

Estimated reading: 1 minute 118 views

1. Why is there no price movement for a particular options contract, even though the underlying stock and future contract are active?

If there’s no price movement for an options contract despite the movement in the underlying stock and future contract, it indicates that the option contract is not actively traded. To check the trading activity of any instrument, you can refer to the Last Traded Time (LTT), which displays the time of the last trade.

2. How can I check the Last Traded Time (LTT) of an instrument?

To view the LTT of any instrument, simply open the market depth of that instrument. The market depth provides insights into the trading activity by showing the time of the last transaction.

3. Why do bid and offer prices fluctuate on the market depth even when there is no trading activity in an instrument?

Bid and offer prices may fluctuate even when there is no trading activity due to two main reasons:

Bid and Offer: The bid and offer prices might be changing, but the Last Traded Price (LTP) may remain unchanged. The market depth window typically displays the top 5 bid and ask prices at all times, even if there’s no recent trading activity.