--- title: "Why are Nifty OTM puts pricier than calls | RupeeCase" description: "On the chain used here, out of the money Nifty puts carried a higher implied volatility than calls at the same distance from the future." source_url: "https://www.rupeecase.com/learn/questions/why-otm-puts-cost-more" --- On 10 Jun 2026 puts below the future carried more implied volatility than calls at the same distance, in nearly every pair Implied volatility of each traded Nifty strike on the 10 Jun 2026 chain for the 30 Jun 2026 expiry, against distance from the future. Strikes without a trade are left out, because they have no price to invert. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. Take a put below the future and a call above it, at the same distance from the forward. If one volatility fitted every strike, a put and a call the same distance from the future would carry the same implied volatility. They do not. On the 10 Jun 2026 chain for the 30 Jun 2026 expiry, the put sat above the matching call in nearly every matched pair. Three reasons get cited. Investors buy puts to protect a portfolio, so demand for downside cover pushes the put price up. The index tends to fall faster than it rises, which gives the return distribution a longer left tail. And sellers of puts ask for more premium for the tail they take. Each reason is a story about who pays for insurance, and one chart cannot tell them apart. The measure that traders use is the skew itself, the gap between the volatility of a put and a call at the same delta, and the risk reversal is the usual name for it. A smile that leans to the put side is the same fact seen from a different angle. The volatility smile page covers the shape across strikes. Price and volatility are different. An out of the money put can cost more in rupees than a call at the same distance because its implied volatility is higher, and a rupee premium also moves with the strike and the time left. To ask whether a put is dear, compare its implied volatility with that of a call at the same distance, and leave the rupee premium out. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) Why are Nifty OTM puts pricier than calls?On the chain used here, out of the money Nifty puts carried a higher implied volatility than calls at the same distance from the future, and that tilt is the volatility skew. The skew is a price that the options market pays for downside protection and for the risk of sharp falls, and it is not a forecast that the index will fall. LGo deeper ## Where Learn teaches this. [Go deeperSkew measures: risk reversal, butterfly and slope10 min, Advanced](/learn/path-16/module-16-8-skew-measures)[Go deeperSmile and skew: a first look at Nifty and stocks8 min, Intermediate](/learn/path-16/module-16-7-volatility-smile-and-skew)[Try itIV solverThe implied volatility behind a dated settlement price.](/learn/tools/iv-solver) SSources ## Go to the source. 3 sources, NISM the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [NSE, option chain (strike level quotes and open interest)](https://www.nseindia.com/option-chain) NSE 2. [NISM, Series VIII equity derivatives certification test objectives](https://www.nism.ac.in/revamp-nism/test-objectives-revised-nism-series-viii-equity-derivatives-certification-examination/) NISM 3. [SEBI, understanding derivatives (investor education)](https://investor.sebi.gov.in/understanding_derivatives.html) SEBI ?Questions people ask ## Related questions. 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Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me. New to RupeeCase? [Getting started](/getting-started) [See the terminal](/terminal) [Sign up for RupeeCase](https://invest.rupeecase.com/signup) [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7) [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera Education only, not investment advice, a research report or a recommendation to buy, sell or hold any security. RupeeCase (QC Alpha Technologies Pvt Ltd) is not registered with SEBI as an investment adviser or research analyst. Contracts and prices shown are for illustration only, come from NSE end of day files at least 30 days old, and are not recommendatory. Derivatives trading carries a high risk of loss.