What is *Settle Price* in NSE options ?

[vince]

Sandhuks,

Pls read the url I mentioned carefully, you will see that the first set of prices 805/808/813 you mention are settlement prices of futures of acc for Jun /Jul/Aug expiries.

If you had scrolled further down you would have seen the settlement price of option stk ACC 799.2 which is the settlement price of all exercised itm options for all expiries and also the closing price of ACC on 26/06/2006 .

The second set of figures you mention are nowhere on this page but from appearences seem to be the closing premium prices of whatever option you are looking at.

 

[vince]

vinceji, thanks for your derivatives tips. i escaped with just a loss of 11500/- in hll calls. the 290 put was settled @ intrinsic value of 53.20 and [email protected] my inflow of 14.5 for put and 4.6 for 280 call sold,my 270 put cost was 4.5.so the difference of 5.5@2000 shares was my loss.
please tell me strategy to follow in nuetral to bearish market conditions.
regards
ravi

Hi Ravi,

I am glad you got off lightly. The best strategy is to plan your trade and manage it dynamically. Trade with the trend , even in a neutral market you will always find a short term trend to trade. Choppy and volatile markets are best avoided. The markets are not running away anywhere but we have to survive and be around to trade them. Keep your ammunition dry, and shoot only when you have a more than even chance of hitting the target.
All the best.

 

[sandhuks]

I hv been asking all along the "Settle price" as quoted by NSE daily feed ...

here it is again -
http://nseindia.com/content/historical/DERIVATIVES/2006/MAY/fo26MAY2006bhav.csv

The tenth column =settle price, (first line is the headers for cols.)

OK my err - but your settlement price of 799.2 is still NOT the settle price as seen in the above url .

- this is the feed I am using for my analysis...

 

[vince]

I hv been asking all along the "Settle price" as quoted by NSE daily feed ...

here it is again -
http://nseindia.com/content/historical/DERIVATIVES/2006/MAY/fo26MAY2006bhav.csv

The tenth column =settle price, (first line is the headers for cols.)

OK my err - but your settlement price of 799.2 is still NOT the settle price as seen in the above url .

- this is the feed I am using for my analysis...

It is not my settlement price , it is the settlement price of the NSE.

What you are looking at is the option premium.

Traders normally use the black schloes calculator to calculate the theoretical price of the option.

 

[sandhuks]

Vince ,I appreciate your efforts to help me but we are going around in circles here

..like the close price of option, the settle price is also obviously the option premium - question is what is it and why is it diff from close ??

I know Black-Scholes is used to calc the th. option price , but I am calculating th IV given the price of option...
..but I need the actual price of the Option - is it close price or is it settle
price.

Am I clear on the question - what is this settle price???

 

[vince]

No problems Sandhuks,

Circles or otherwise we try to answer queries the best we can.

Both the closing and settle-pr of premium will be the same if the option has been traded. Closing prices are to be taken for all analysis and calculations.