Are there any strategies in Futures???

#1
Does anyone know of any so-called strategies in stock futures like those in options.. If yes, please do share..
As per my knowledge, FIIs use them with options as a hedge..And I know that they are mostly interested in Nifty Futures and if they only play in Futures, then they hedge from top 20 stock futures with Nifty Futures..
On commodities front, they use oil, cotton, soya and sugar futures as a hedge with Index options
Also can anyone throw light on the sector rotation strategies and portfolio rebalancing using beta and delta of options..I'm sure these all are linked and each strategy has a correlation factor with the other strategy which can better decode the mysterious world of derivatives for us :cool:
 
#2
Not sure of any strategies but one observation that I have made...

For the past 2-3 days, INFY is showing major long built-up in OI both in Futures & options with 2450 call being the most active..also there are decent no of rollovers...the current series return on INFY Futures is around 11% which is huge... Also INFY IV has jumped by more than 7% to around 32% meaning people are more interested and i guess are expecting better returns or perhaps a better quarter...Also in last 5 days FIIs have net bought 44cr in stock options and INFY is the most traded option whereas they have net sold in stock futures for hedging...

So i think I'll place my bets on INFY...wat say ?? :cool:
 
#3
Just a thought....

as we have betas for stocks...we can have betas for Futures as well...as we have deltas for options we can have cost of carry as the variable for futures and create a portfolio of futures where the net cost of carry will be zero..and add a delta hedged portfolio of options...so the resulting portfolio can mimic stocks and be used for sector rotation using future-betas...
 

knarendra

Active Member
#4
Not sure of any strategies but one observation that I have made...

For the past 2-3 days, INFY is showing major long built-up in OI both in Futures & options with 2450 call being the most active..also there are decent no of rollovers...the current series return on INFY Futures is around 11% which is huge... Also INFY IV has jumped by more than 7% to around 32% meaning people are more interested and i guess are expecting better returns or perhaps a better quarter...Also in last 5 days FIIs have net bought 44cr in stock options and INFY is the most traded option whereas they have net sold in stock futures for hedging...

So i think I'll place my bets on INFY...wat say ?? :cool:
Hello sir,
where are you get the information? pl.tell me the websites name.
From I think If the IV is increased, then the stocks suddenly price drops.
What is your openion?
 

DanPickUp

Well-Known Member
#5
Does anyone know of any so-called strategies in stock futures like those in options.. If yes, please do share..
As per my knowledge, FIIs use them with options as a hedge..And I know that they are mostly interested in Nifty Futures and if they only play in Futures, then they hedge from top 20 stock futures with Nifty Futures..
On commodities front, they use oil, cotton, soya and sugar futures as a hedge with Index options
Also can anyone throw light on the sector rotation strategies and portfolio rebalancing using beta and delta of options..I'm sure these all are linked and each strategy has a correlation factor with the other strategy which can better decode the mysterious world of derivatives for us :cool:
Dear Bagle

Interesting questions and very good questions. :) Futures work differently compare to options and so the variety's of trading strategies are limited in future trading. There are hundert's of TA trading systems for futures, but they do not work the same as the option strategies do.

But realistically: The knowledge and deeper answers to your questions are not posted for free in the net. Each business has it's deeper knowledge and protection and getting this knowledge on higher stages is only possible by buying for it.

If you are from the banking business, why not ask your boss if he is going to send you to classes where this is told and the company pays for that or is this not possible in India?

Here a thread about future spreads: http://www.traderji.com/commodities/45523-spread-trading-strategy-calculation.html#post474453

Using delta means that any action token is done by looking at this factor and then action will be taken accordingly to the given situation. Too much delta long means going short and vice versa for too much short delta.

Good learning

DanPickUp
 

bagle

New Member
#6
Sorry my mistake...posted in the wrong thread...i still think there are intelligent people like you who can give new dimensions to trading and investing...i think knowledge should be shared...money cant be made just by knowledge and info...timing is equally important!! Lack of knowledge is the difference between us and the FIIs!!
 

knarendra

Active Member
#7
Not sure of any strategies but one observation that I have made...

For the past 2-3 days, INFY is showing major long built-up in OI both in Futures & options with 2450 call being the most active..also there are decent no of rollovers...the current series return on INFY Futures is around 11% which is huge... Also INFY IV has jumped by more than 7% to around 32% meaning people are more interested and i guess are expecting better returns or perhaps a better quarter...Also in last 5 days FIIs have net bought 44cr in stock options and INFY is the most traded option whereas they have net sold in stock futures for hedging...

So i think I'll place my bets on INFY...wat say ?? :cool:
Hai,
I think ECB bond buying program is the main reason. But, how can you know the details? pl.explain me.
 
#8
Hai,
I think ECB bond buying program is the main reason. But, how can you know the details? pl.explain me.
I hv been keenly following INFY and maintaining an excel where I do my own calculations...and I refer to the NSE site where all details about IV,CoC etc can be found..rest is my own analysis...would be keen to share more such things if ppl are interested! Cheers!!
 
#9
where are you get the information? pl.tell me the websites name.
From I think If the IV is increased, then the stocks suddenly price drops.
What is your openion?