Options Trading

Market Today: TCS Q2 nos, NSE weekly options changes, Oil gains, Israel war

At 6:30 AM, GIFT Nifty Futures were trading 39 points lower at 25,079 levels, indicating a weak start for the Indian bourses.

Trapped in the game: 93% of F&O traders lose money but refuse to quit. Why?

A report from the Securities and Exchange Board of India (Sebi) revealed that about 93% of F&O traders lose money in this segment, yet multiple factors keep them hooked to the game

BSE, NSE spar over derivatives markets, lure investors with lower fees

The NSE plans to launch options contracts based on key sectoral indices, including the pharmaceutical and IT indices, if it gets the regulatory go-ahead, according to two exchange sources

Jane Street saga echoes another warning for retail option traders

In India's derivatives market, where the average daily trading volume has surged nearly two-folds to Rs 440 trillion in just a year, algorithmic trades are not new

F&O Strategy: Bull Spread on NMDC for Nov expiry

Nandish Shah of HDFC Securities recommends to Buy NMDC 160 CALL and simultaneously sell 170 CALL of the November series.

Option Trading Strategy: Bear Spread on Nifty for 12-Oct expiry; here's why

Buy Nifty 19500 Put option and simultaneously Sell 19300 Put of the 12-October expiry, recommends Nandish Shah, Sr. derivatives & technical research analyst of HDFC Securities.

Option Trading: Adopt Bear Spread on ICICI Bank, suggests HDFC Securities

Buy ICICI Bank 960 Put option and simultaneously Sell 940 Put of the September series, recommends Nandish Shah, Sr. derivatives & technical research analyst of HDFC Securities.

No proposal to curb retail participation in derivatives trading: Sebi

Citing what it said were speculative media reports, SEBI said in a statement, "It is clarified that there is no proposal to curb retail participation in derivative markets"

Finance Bill: Centre hikes STT on futures and options trading by up to 25%

STT was introduced in 2004 and is levied on transactions involving different types of securities through the stock exchange route

Options Trading: Vinay Rajani recommends buying Federal Bank Put

The technical analyst from HDFC Securities reommends buying Federal Bank 85 Put with a stop loss at Re 1.

Sebi tweaks exercise mechanism of options on commodity futures

Under mechanism, Sebi said All In the Money option contracts will be exercised automatically, unless 'contrary instruction' has been given by long position holders of such contracts for not doing so

Options trading: NCDEX looks to incentivise farmer-producer organisations

NCDEX will provide underwriting support for 5,000 tonnes of chana and mustard

Govt brings commodity option trading, settlement at par with equities

Commodity options can now be settled directly instead of the current practice of options devolving into futures first and then being settled

Options trading gathers steam in Q2; share of cash in average volumes falls

Share of cash in falls from 2.9% to 2.5% in September quarter

What are option Greeks and how to interpret them during trading?

Option Greeks break down the intrinsic value of the call and put option and then study the finer aspects of the price movement

How to measure and interpret implied volatility for trading options

Implied volatility is a measure of implied risk that traders are imputing in the option price

Letters: Futureless option

This refers to the editorial "Risky option" (July 28). Options trading is a natural corollary of futures trading. However, the entry of banks, foreign institutional investors, mutual funds and foreign hedgers in Indian agri-commodities is fraught with danger. It is disconcerting to note that recommendations have been made merely to provide liquidity and depth to the commodities market without an analysis of deeper implications for the economy. Banks and institutions will enter the commodities market not as voluntary market makers, but to generate profits for themselves. As in the equity game, volatile bull markets are the ones that bring profits to the futures and options players. Price rise will be a natural consequence when cash-rich players start chasing local agri-commodities. This is as good as hoarding.Regulatory provisions cannot prevent manipulative trade. Regulators can only limit the damage or they may conduct a post-mortem if things go out of hand. What actually happen is p