Options Trading

A little-known company’s stock has skyrocketed from ₹15 to nearly ₹9,500 in just 18 months, a staggering rise of over 64,000%.

Today's wrap of the Opinion Page considers the E20 mandate and its potential impacts, what a US court's ruling on Google means, India's spice trade, and the regulatory aspects of options trading

Expiry-day swing gives NSE a chance to reclaim lost territory from BSE

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

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

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

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

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

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.

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.

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"

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

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

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

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

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

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

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

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

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