Option interval revision

Y

yoogi

Member
#1
#1
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.
 
R

rkkarnani

Well-Known Member
#2
#2
yoogi said:
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.
Click to expand...
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.....
 
Y

yoogi

Member
#4
#4
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?
 
R

rkkarnani

Well-Known Member
#5
#5
yoogi said:
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?
Click to expand...
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.
 
You must log in or register to reply here.
Thread starter Similar threads Forum Replies Date
N Explore Enhanced Options Strategy Analysis- Backtest Expired Options W/O Downloading From NSE Websites 6
N Why do some deep OTM options increase in value while less deep OTM options dont? Options 3
S Hedging in BAN stock via Option Derivatives 0
T Algo HFT trading rapidly increasing in India (Money Control), I think this will make it difficult for retail intraday/option traders to make profits Algo & Automated Trading 0
N I have an interesting options trading strategy. General Trading & Investing Chat 7

Similar threads