New Delhi, Feb. 16 -- As developments in artificial intelligence (AI) unsettle shares of traditional technology firms, investors await clarity on the final contours of the India-US trade deal and the risk of a US-Iran conflict rises, options sellers have initiated trades that point to continued market volatility this week, market experts said.

In the last trading session on Friday, their strategy consisted of selling more Nifty call options expiring on Tuesday, in anticipation of corrective to flat markets, which would enable them to retain the premia paid by the call buyers.

After India and the US issued joint statements on an interim trade deal reached on 2 February, the benchmark Nifty50 surged to 26,341.2 points. The index had falle...