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On Tuesday, BSE clocked a futures and options (F&O) turnover of Rs 3.36 lakh crore, the highest. The derivatives turnover of the National Stock Exchange (NSE) stood at Rs 3.29 lakh crore.
Most of the action is said to have been limited to out-of-the-money puts, which usually see limited volumes. The bulk of the turnover was concentrated in the 24,400 and 24,600 Sensex put options. Considering the Sensex closed at 25,368.9 on Tuesday, these options will only lead to gains for holders if the index falls about 1,000 points by Thursday, when these contracts expire.
A BSE official declined to comment.
Tuesday also marked a new high for overall derivatives turnover. At Rs 6.65 lakh crore, the combined F&O turnover of BSE and NSE was the highest. Last month, NSE had clocked its highest single-day F&O turnover at Rs 4.36 lakh crore.
The turnover is a notional figure based on the price of the underlying from which the instrument derives its value, rather than the value of the trade. Trading volumes tend to surge in the derivatives expiry week. To draw volumes to its trading platform, BSE has been using an incentive scheme —traders making execute orders on the exchange are provided monetary rewards for trading in products that require additional volume support.
So far this month, BSE’s average daily turnover stands at Rs 88,600 crore. For May, It stood at Rs 14,191 crore.
