DErivatives questions

[bvpraveen]

1) It is you yourself buying next series & closing this series,it can be in options also.(Time Decay is to be onsidered).If i dont ,then exchange will sq off .(That is the reason on last thursday's last half hr's avg price is taken as close price)
2) Like all transactions.
3) Till you are not tired.

NB : the last thursday the underlying price in cash mkt & it's derivative price is almost exact at closing.

Thanks Ashish.

 

[uasish]

You are right it is indeed fresh position ,but normally it is seen that upto last wk there is thin vol in next month & far month series but from last wk open interest of those month increases & current series starts decreasing signifying that the speculator is rolling over his positions of bullishness or bearishness on that counter even to next month series.

 

[J_D]

Asish, So rollover is the term for the % of volume of positions created till the start of the new month and there after that the volume of new positions created in the new month can be termed as open interest.. Is my understanding right?

 

[desi123]

Asish, So rollover is the term for the % of volume of positions created till the start of the new month and there after that the volume of new positions created in the new month can be termed as open interest.. Is my understanding right?

Rollovers dont take Options into Accounts. Its only Futures. If you close out current month future and open next month contract, you have rolled over.

Cheers

DT