Page 2 - Futures & Options

Lok Sabha 2024 poll outcome: Retail investors' boldest bet in 10 years

Retail index long positions as on May 27, 2024 - five days ahead of vote counting - stood at 3.13 lakh contacts, as compared to 1.92 lakh contracts and 1.99 lakh contracts during such earlier periods

Sebi extends settlement scheme period till Jun 10 in stock option cases

Capital markets regulator Sebi on Wednesday extended the settlement scheme period till June 10 for entities involved in reversal trades in the stock options segment on BSE in 2014 and 2015. The settlement scheme commenced on March 11 and was scheduled to conclude on May 10. "It has been observed that during the last few days, a large number of entities have shown interest in availing the scheme. Considering the interest of entities in availing the scheme, the competent authority has extended the period of the scheme till June 10, 2024," Sebi said in a statement. The regulator, in March, introduced the ISO Settlement Scheme 2024, which provides a settlement opportunity to those entities that have executed trade reversals in the stock options segment of BSE during the period April 1, 2014, to September 30, 2015, and against whom adjudication proceedings have been initiated and are pending before any forum or authority. After the expiry of the scheme period, actions as per the relevan

Sebi extends cross-margin benefits for futures with different expiry dates

Capital markets regulator Sebi on Tuesday extended the cross margin benefit between index futures position and constituent stock futures position in the derivatives segment for offsetting positions with different expiry dates. At present, the cross margin benefits are provided if both the correlated indices or an index and its constituents, as the case may be, have the same expiry day. Cross margining enhances liquidity and financing flexibility for entities by reducing margin demands and decreasing net settlement obligations. "In discussion with stock exchanges, clearing corporations and risk management review committee of Sebi, it has been decided to extend the cross margin benefit on offsetting positions having different expiry dates," the regulator said in a circular. This is subject to certain conditions including a 40 per cent spread margin will apply for offsetting positions in correlated indices with different expiry dates, while the existing 30 per cent margin stays for ..

Jane Street's $1 billion trade puts spotlight on Indian derivatives market

Despite the risks, the allure of India's market potential remains strong for both domestic and foreign market makers

'Turmoil in exchange-traded FX options on forced position unwinding'

The premium on out-of-the-money dollar/rupee put options expiring on April 26 soared up to 250%, despite spot dollar/rupee inching up 0.04% to 83.4200

Sebi introduces settlement third scheme on illiquid stock option cases

Capital markets regulator Sebi on Wednesday introduced a third settlement scheme for entities involved in reversal trades in the stock options segment on BSE in 2014 and 2015. The scheme will commence on March 11 and conclude on May 10, the Securities and Exchange Board of India (Sebi) said in a statement. After the expiry of the scheme period, actions as per the relevant provisions of securities laws will be continued against the entities which do not avail this opportunity for settlement. Moreover, the regulator said that frequently asked questions with respect to the scheme will be available on the websites of Sebi and BSE on March 11. The scheme would provide a settlement opportunity to all the entities that have executed reversal trades in the stock options between April 1, 2014, and September 30, 2015, against whom proceedings have been initiated and are pending before any authority or forum. By availing the benefit of the scheme, the entities can settle such proceedings and

Charts signal strength in Exide; Bull Spread Strategy ideal for Dec expiry

Long build up was seen in Exide Futures on Thursday where Open Interest rose by 9 per cent (Prov) and the stock gained 3.20 per cent

From October 16, Bankex derivatives expiry date to shift to Monday

The exchange had chosen Friday as the expiry day for its relaunched Sensex and Bankex futures and options contracts to differentiate from market leader NSE

Buy Max Financial Services October Futures, suggests HDFC Securities

RSI Oscillators is sloping upwards and placed above 50 on the daily chart, indicating strength in the stock, says Nandish Shah

NSE on its way to extend trading hours for F&O, awaiting Sebi nod

The National Stock Exchange (NSE) has already submitted a proposal to the market regulator Securities and Exchange Board of India (SEBI)

NSE to launch options on WTI Crude oil, natural gas futures contracts

The National Stock Exchange (NSE) on Friday announced that it will launch options linked to NYMEX WTI Crude Oil and Natural Gas futures contracts in its commodity derivatives segment. This came after the exchange received approval from the markets regulator Securities and Exchange Board of India (Sebi) to launch these contracts. The addition of options on futures contracts will further boost NSE's product offering in the overall commodity segment. These contracts are designed to provide the market participants with a more efficient way to manage their commodity risk, the exchange said in a release. "It gives us immense pleasure to inform the market participants that NSE is planning to launch Options on NYMEX WTI Crude Oil and Natural Gas futures contracts in October 2023. "We would like to thank all the market participants for showing their trust & confidence in the NSE WTI Crude Oil and Natural Gas Futures contracts, and we are confident that the same will continue with the ...

RBI asks some banks to stop taking fresh arbitrage positions in NDF market

"The RBI has told us not to take new outright arbitrage positions," a senior trader at a private sector bank said

ADTV for equities cash market segment hits a 21-month high in July

F&O volumes log new highs, increase by 2.8 times over a year earlier

Sebi mandates risk disclosures for F&O trades, to protect retail investor

A study published by Sebi in January showed that only one in 10 F&O traders turned out to be profitable during FY22

The real gainers from F&O 'casino'

Whether they make or lose money, traders have to incur transaction costs, including brokerage, exchange fees, turnover fees, and securities transaction tax, etc.

Gold may take a breather around Rs 56,850; Trading range narrows for Silver

The overall bias for Gold remains bullish, with near support seen at Rs 55,900 level. The Bollinger Bands indicate a likely trading range of Rs 2,000-odd points for the MCX Silver March futures.

T+1 settlement of all F&O stocks pushed to Jan 2023, transition at one go

However, the timeline issue for many FPIs remains, as the relaxation still compels them to book forex during non-market hours

Sebi revises threshold for adjustment in derivative contracts post dividend

Capital markets regulator Sebi on Tuesday came out with new adjustment rules for dividends in Futures and Options (F&O) scrips. "It has been decided that the adjustment in derivative contracts shall be carried out in cases where dividends declared are at or above 2 per cent of the market value of underlying stock," Sebi said in a circular. The threshold has been revised from 5 per cent and above to 2 per cent and above. The new framework will be applicable from Wednesday. Currently, dividends that are below 5 per cent of the market value of the underlying stock are deemed ordinary dividends and no adjustment in the strike price is made for such dividends. For extra-ordinary dividends, which will be at and above 2 per cent of the market value of the underlying security, the strike price would be adjusted. In case of declaration of "extra-ordinary" dividend by any company, the total dividend amount (special and /or ordinary) would be reduced from all the strike prices of the option

Decoded: What is F&O and how is it different from equity trading?

Futures and Options are derivative contracts which allow a market participant to purchase and sell a stock or index at a specific price and on a future date. Let us find out more about them

Why the need to put up additional margin makes futures trading risky

Not only must your call be directionally right, the price movement must occur within a stipulated time frame for you to make money