Call put option trading nse f&o

A futures contract is a forward contract, which is traded on an Exchange. NSE commenced trading in futures on individual securities on November 9, Selection criteria for securities. NSE defines the characteristics of the futures contract such as the underlying security, market lot, and the maturity date of the contract. The futures contracts are available for trading from introduction to the expiry date. These securities are traded in the Capital Market segment of the Exchange.

Futures contracts have a maximum of 3-month trading cycle - the near month one , the next month two and the far month three. New contracts are introduced on the trading day following the expiry of the near month contracts. The new contracts are introduced for a three month duration. This way, at any point in time, there will be 3 contracts available for trading in the market for each security i.

STT Trap – Options Expiry – NSE BSE MCX-SX « Z-Connect by Zerodha

Futures contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day. The value of the futures contracts on individual securities may not be less than Rs. Download the file for permitted lot size. Base price of futures contracts on the first day of trading i. The base price of the contracts on subsequent trading days would be the daily settlement price of the futures contracts.

In respect of orders which have come under price freeze, members would be required to confirm to the Exchange that there is no inadvertent error in the order entry and that the order is genuine.

Beginners Guide to Options

On such confirmation the Exchange may approve such order. Orders which may come to the exchange as a quantity freeze shall be based on the notional value of the contract of around Rs. Quantity freeze is calculated for each underlying on the last trading day of each calendar month and is applicable through the next calendar month.

Download the file for quantity freeze. An option gives a person the right but not the obligation to buy or sell something. An option is a contract between two parties wherein the buyer receives a privilege for which he pays a fee premium and the seller accepts an obligation for which he receives a fee. The premium is the price negotiated and set when the option is bought or sold.

A person who buys an option is said to be long in the option.

A person who sells or writes an option is said to be short in the option. NSE became the first exchange to launch trading in options on individual securities. Trading in options on individual securities commenced from July 2, Options contracts have a maximum of 3-month trading cycle - the near month one , the next month two and the far month three. On expiry of the near month contract, new contracts are introduced at new strike prices for both call and put options, on the trading day following the expiry of the near month contract.

The new contracts are introduced for three month duration. Options contracts expire on the last Thursday of the expiry month. Following strike parameter is currently applicable for options contracts on all individual securities:.

The strike scheme for options contracts on all individual securities is based on the volatility of the underlying stock. Exchange shall review it and revise if necessary, on a quarterly basis. Download file for Stock Options Strike Scheme. The Exchange, at its discretion, may enable additional strikes as specified in the direction of the price movement, intraday, if required.

The additional strikes may be enabled during the day at regular intervals and message for the same shall be broadcast to all trading terminals. In order to decide upon the at-the-money strike price, the underlying closing value is rounded off to the nearest strike price interval.

The in-the-money strike price and the out-of-the-money strike price are based on the at-the-money strike price interval.

The value of the option contracts on individual securities may not be less than Rs. Base price of the options contracts, on introduction of new contracts, would be the theoretical value of the options contract arrived at based on Black-Scholes model of calculation of options premiums. The options price for a Call, computed as per the following Black Scholes formula: Natural logarithms are based on the constant e 2.

Rate of interest may be the relevant MIBOR rate or such other rate as may be specified. The base price of the contracts on subsequent trading days, will be the daily close price of the options contracts. The closing price shall be calculated as follows:. If the contract is not traded for the day, the base price of the contract for the next trading day shall be the theoretical price of the options contract arrived at based on Black-Scholes model of calculation of options premiums. The higher the Percent of Deliverable Quantity to Traded Quantity the better - it indicates that most buyers are expecting the price of the share to go up.

Selection criteria for securities NSE defines the characteristics of the futures contract such as the underlying security, market lot, and the maturity date of the contract.

Contract Specifications Security descriptor The security descriptor for the futures contracts is: Symbol of underlying security Expiry date: Date of contract expiry Instrument type represents the instrument i.

Trading cycle Futures contracts have a maximum of 3-month trading cycle - the near month one , the next month two and the far month three. Expiry day Futures contracts expire on the last Thursday of the expiry month. Trading Parameters Contract size The value of the futures contracts on individual securities may not be less than Rs.

Base Prices Base price of futures contracts on the first day of trading i. Quantity freeze Orders which may come to the exchange as a quantity freeze shall be based on the notional value of the contract of around Rs. Selection criteria for securities Contract Specifications Security descriptor The security descriptor for the options contracts is: Date of contract expiry Option Type: Strike price for the contract Instrument type represents the instrument i.

Options on individual securities. Underlying symbol denotes the underlying security in the Capital Market equities segment of the Exchange Expiry date identifies the date of expiry of the contract Option type identifies whether it is a call or a put option.

Trading cycle Options contracts have a maximum of 3-month trading cycle - the near month one , the next month two and the far month three. Expiry day Options contracts expire on the last Thursday of the expiry month. Strike Price Parameters Following strike parameter is currently applicable for options contracts on all individual securities: The strike price interval would be: Underlying Closing Price Strike Price Interval No.

Exchange shall review it and revise if necessary, on a quarterly basis Download file for Stock Options Strike Scheme. Trading Parameters Contract size The value of the option contracts on individual securities may not be less than Rs.

Base Prices Base price of the options contracts, on introduction of new contracts, would be the theoretical value of the options contract arrived at based on Black-Scholes model of calculation of options premiums. The closing price shall be calculated as follows: If the contract is traded in the last half an hour, the closing price shall be the last half an hour weighted average price. If the contract is not traded in the last half an hour, but traded during any time of the day, then the closing price will be the last traded price LTP of the contract.

Related Links Watch the market live! Equities Stock Watch Charts Map of the Market Get real-time market analyses! Verifying your trades Registering a complaint Getting NSE certification Did You Know The higher the Percent of Deliverable Quantity to Traded Quantity the better - it indicates that most buyers are expecting the price of the share to go up.