What is LTP in an option chain?
LTP stands for last traded price, the price at which the most recent trade in a contract went through. In an option chain, the LTP column shows the current premium of each call and put, so the 24,500 CE LTP of 132 means the last trade in that call happened at 132 per unit.
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What is call LTP and put LTP?
Call LTP is the last traded premium of the call option at a strike, and put LTP is the last traded premium of the put at the same strike. They move in opposite directions as the underlying moves: when NIFTY rises, call LTPs rise and put LTPs fall.
The two are linked. For one strike and expiry, call LTP minus put LTP is close to the futures price minus the strike. If that gap is far off, one of the two LTPs is stale.
How is LTP calculated?
It is not calculated. LTP is simply the price of the last matched order on the exchange. When a buyer and seller agree on 132, the LTP becomes 132 until the next trade.
What is calculated is the fair value of an option, from the spot price, strike, time to expiry, implied volatility and interest rate. That is what an option pricing model or the AOC LTP Calculator estimates. The market LTP can sit above or below it.
Why does LTP sometimes look wrong?
Deep in-the-money and far out-of-the-money strikes trade rarely. Their LTP can be minutes or hours old while the index has moved, so it no longer reflects what you would pay. Check the bid and ask before trusting the LTP of an illiquid strike, and use limit orders there.
What is the difference between LTP and closing price?
LTP changes with every trade during the session. The closing price is fixed once at the end of the day by the exchange's own method; for futures it is a volume-weighted average of the last half hour, not the very last trade. That is why the LTP at 3:29 pm and the official close can differ.
What is LTP in Zerodha?
The same thing. In Zerodha Kite, Groww, Upstox or any other broker app, LTP in the market watch is the last traded price of the stock, future or option. The number comes from the exchange; only the screen around it changes.
What is LTP and OI in an option chain?
LTP tells you what an option costs. OI tells you how many of those contracts are still open. Read together they show who is acting: OI rising while a call's LTP falls usually means fresh call writing, and OI rising while LTP rises means fresh buying.
How does AOC show LTP?
Each side of the AOC option chain has an LTP/Chg column: the premium, its change for the day and, in brackets, its time value. Tap it to open the LTP Calculator, which estimates what that option will be worth if the index reaches a price you type in and gives an entry, stop loss and target.
