Day Trading Stocks & Futures

hi timepass,

sorry if my q is naive.

for exampe:

now we are in may, so when you say futures go into discount on the 3rd / 4th week .... you mean june futures right? .... and when you say rollover happens .. you must have meant june futures .... because (may is already expired) ... so june futures pick up steam during the course of the june month and expires in premium by the end of the (june) month.
Basically premium is the value over the intrinsic value that a future gets from the underlying. It is related with the uncertainty and expectation that the market has. Now as the time for expiry draws near (which would be next week for BN Futures-May series has not expired) the uncertainty ceases. People are clearer about where the underlying will end up and hence the premium decays. It will eventually kiss the underlying on the expiry day
 
hi timepass,

sorry if my q is naive.

for exampe:

now we are in may, so when you say futures go into discount on the 3rd / 4th week .... you mean june futures right? .... and when you say rollover happens .. you must have meant june futures .... because (may is already expired) ... so june futures pick up steam during the course of the june month and expires in premium by the end of the (june) month.
This usually happens a week or so before the expiry. The premium comes down greatly, or even goes in discount.
 
Crude may future have expired
but I dont think, they were discussing Crude
I sincerely apologise my mistake, if they were discussing Crude :)
I thought they were discussing BNF/NF and such like.

BTW, in Crude, its future only and no underlying to compare discount/premium etc (atleast in our market)
Just FYI
 

Raj232

Well-Known Member
Discussion was on BankNifty (and probably Nifty) futures. However, I have not noticed this happening every month.. maybe I need to keep an eye out, probably happening more during times of correction .. but dont recollect BNF discount during 2017 bullish times.
 
Discussion was on BankNifty (and probably Nifty) futures. However, I have not noticed this happening every month.. maybe I need to keep an eye out, probably happening more during times of correction .. but dont recollect BNF discount during 2017 bullish times.
reduced premium ?? Anyway, let's keep an eye on it for future.
 
Discussion was on BankNifty (and probably Nifty) futures. However, I have not noticed this happening every month.. maybe I need to keep an eye out, probably happening more during times of correction .. but dont recollect BNF discount during 2017 bullish times.
Happens every month.... Also its not always premium, in case of a bearish scenario, there can also be a discount to the spot. Again this is about the current expectation that the market has. A lot of people just use the difference and the change in the difference as an indicator of the future direction
 
Happens every month.... Also its not always premium, in case of a bearish scenario, there can also be a discount to the spot. Again this is about the current expectation that the market has. A lot of people just use the difference and the change in the difference as an indicator of the future direction
Week prior to last BNF stayed discounted to the spot around 50pts.

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I have posted some observations about it in a new thread.

http://www.traderji.com/community/threads/bnf-nf-discount-premium-towards-series-end.106482/

The xls needs more work, but just started it.
 
I've entered ICICI Futures at 298.75 levels

Also entered Tata Elxsi Futures at 1220 levels

Had exited ICICI at 297.75 -> Seems all the 2X volume was false signal for ICICI - Though has always worked for other stocks - volume preceeds price

Tata Elxsi exited at 1237 levels -> Will be on watch list as Monday/Tuesday again there could be steam left in this as I have seen similar price action in NIIT Tech earlier - highly volatile but good returns
 
Had exited ICICI at 297.75 -> Seems all the 2X volume was false signal for ICICI - Though has always worked for other stocks - volume preceeds price

Tata Elxsi exited at 1237 levels -> Will be on watch list as Monday/Tuesday again there could be steam left in this as I have seen similar price action in NIIT Tech earlier - highly volatile but good returns
Was this volume in stocks, options cumulative OI or futures contracts traded. I have had a feeling that the stock was boosted so that it would not crack badly after poor results. same with SBI.
 

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