Option interval revision

Discuss Option interval revision at the Derivatives within the Traderji.com - Discussion forum for Stocks Commodities & Forex; OPTIONS : REVISION IN SCHEME OF STRIKES IN INDEX OPTIONS I did not completely understand the ...


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  #1  
Old 4th September 2007, 04:44 PM
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Default Option interval revision



OPTIONS : REVISION IN SCHEME OF STRIKES IN INDEX OPTIONS

I did not completely understand the message from NSE circular *Source : NSE circular No. NSE/F&O/050/2007 date: 6/7/2007

But it could help new traders to avoid those ill-liquid options and let the market trade only on liquid options. May be for Nifty, we could have had a 25 point interval.

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Old 4th September 2007, 09:24 PM
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Default Re: Option interval revision

Quote:
Originally Posted by yoogi View Post
OPTIONS : REVISION IN SCHEME OF STRIKES IN INDEX OPTIONS

I did not completely understand the message from NSE circular *Source : NSE circular No. NSE/F&O/050/2007 date: 6/7/2007

But it could help new traders to avoid those ill-liquid options and let the market trade only on liquid options. May be for Nifty, we could have had a 25 point interval.
I think the circular says this :
At present we have option pricing of Index at an interval of Rs.10/- the same has been changed to Rs.50/-.
At present we get options for 4400, 4410, 4420 etc. From Nov. onwards it shall be 4400, 4450,4500.....

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Old 4th September 2007, 10:18 PM
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Default Re: Option interval revision

gud........

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  #4  
Old 5th September 2007, 03:24 PM
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Default Re: Option interval revision

would that mean we will have deeper Options for November, ie something like 3500 to 5500 range for 3 month contracts if nifty closes this moth at 4500?

or it will be in same range as of now. smaller range of around 400 points up or down?

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  #5  
Old 5th September 2007, 03:50 PM
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Default Re: Option interval revision

Quote:
Originally Posted by yoogi View Post
would that mean we will have deeper Options for November, ie something like 3500 to 5500 range for 3 month contracts if nifty closes this moth at 4500?

or it will be in same range as of now. smaller range of around 400 points up or down?
As per my understanding of the cicular there shall be 5 contracts on either side of the Maximum and minimum level attained by the index in the last 2months rounded to the nearest interval.
If we consider 4000 and 4600 as the high and low of Aug Sep and Oct then the Nov series should have :
Lowest option of 3750 and highest option of 4850.
However if on any day Index closes at or near 4650, a further option of 4900 shall be introduced. Similaly if index closes near 3950 a further option of 3700 shall be introduced.

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