BSE to launch Weekly Options

#1
Insted of increasing the life of the option instrument, BSE has done just the reverse - reduced the life of the option instrument to ONE WEEK.

BSE To Launch Weekly Options From June 04 

YAGNESH KANSARA

MUMBAI, APRIL 20:  The Securities and Exchange Board of India (Sebi) has cleared a new product namely weekly series for the derivatives segment of The Stock Exchange, Mumbai (BSE). Following this clearance, BSE will introduce weekly series for options on index and individual stocks on which derivatives trading is permitted. BSE is expected to launch the new product in the first week of June.



A senior BSE official speaking to FE said: The regulator has already cleared our proposal to introduce the weekly series. The approval from the regulator is for both futures and options, but to start with, we will introduce this series only on options, as we think that the shortened series is the need of the hour as far as options trading is concerned. The new series will have all the other features of normal monthly series like roll over of contract and others. On the positive side, the new series will bring cut cost of carry significantly, as the investor will hold the series only for 5 days with the option of roll over, he added.
 
#2
BSE to start weekly options from Monday

IN an effort to revive derivatives trading, the Bombay Stock Exchange (BSE) has decided to start weekly options from Monday. Initially, weekly options will be available on the benchmark index Sensex and select scrips.

The benefits of weekly options are that they will command lower premium due to shorter maturity and cost less than the monthly options.

The BSE in a statement on Saturday said this (weekly options) has been introduced to cater to a demand for shorter maturity options (normally Monday to Friday). This is in addition to the existing series - mainly the stock and index options offered for near, middle and far contract month series. For the September month, one- and two-weeks options will commence from September 13, which will expire on September 17 and September 24, respectively. On September 20, another two-week maturity option will commence, which will expire on October 1 and so forth. If the expiry of weekly options falls on a trading holiday, then it (as per SEBI guidelines) will be on the previous trading day.

Since the launch of derivatives trading in June 2000 on the BSE, this segment of the exchange has not been able to show a growth similar to the National Stock Exchange. In the last few months, the volume in the derivatives segment of the BSE has been negligible.

According to the BSE, the benefits of weekly options are that they will command lower premium due to shorter maturity and cost less than the monthly options. They will also provide an opportunity for arbitrage between one week to maturity and two weeks to maturity options, weekly options and monthly options.

On account of low cost, the liquidity will improve, as more participants would come in. They will also lead to better price discovery and improve market depth, the statement said.
 
#5
Dear Rajib
I am doing stocks in india and options on the nasdaq, i have been trying to do F&O on Indian markets but I just dont know how to work it out, I have an operating account in icicidirect ( now planning to change)
but I need to get the knowledge of how to carry out the trade, the software is so different, I just need to understand the techincalls
I am quite familar with the strategy which i use in nasdaq, could u help me in this regard
bcause i feel it silly to trade in stocks, specially when we have options avaliable ???

thks
b rgds
gopii
 
#6
Gopi,

It is no different than trading options on Nasdaq stocks. All you have to do is to use the trading platform your broker offers and start getting quotes on F&O and place you orders just as you do for the stocks.

If you need additional knowledge, I will suggest you to go to the site of BSE as well NSE web site. They offer explanation of every thing you want to know before trading.

Good Luck

WasteJ
 
#7
Tradergi has already told the point. i will stop trading in icici direct.

Went to indiabulls , i have wathched their pib(power indiabulls) , i feel it is
quiet easy to use but will take only a few days to operate. odin is also a good option.
 

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