Calm Over Polls Leaves India Option Traders Exposed to Surprises

Indian option traders appear to be relatively unconcerned that the upcoming general election will disrupt the market’s steady climb higher, potentially leaving them vulnerable to an unexpected outcome.

While NSE Nifty 50 Index’s monthly options expiring just after the election have risen slightly in value relative to shorter-term contracts as the world’s largest democratic exercise approaches, their premium over April is 61% smaller than it was before the May 2019 vote, data compiled by Bloomberg showed.