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NSE trading in options begins

Our Bureau

MUMBAI, July 2

THE National Stock Exchange (NSE) today commenced trading in American style options contracts on individual securities.

NSE has introduced options on individual securities in all 31 securities as approved by SEBI. At any point of time there will be three contracts available for trading with about one month, two months and three months to expiry.

A minimum of five strike price for every option type (call and put) were available for trading ie two contracts in-the-money (ITM), two contracts out-of-the money (OTM) and one contract at-the-money (ATM).

In view of this, 930 option contracts on individual securities were available in 31 securities on the first day of trading.

The exchange said that the first trade was in the near month July call option on ACC at strike price of Rs 120 at a premium of Rs 20. The total number of options contracts on individual securities traded today was 379 with a notional value of the option contracts traded around Rs 9 crore.

Out of the 31 underlying securities on which option contracts were introduced, 13 securities got traded.

Reliance was the most active option contracts on individual securities traded with 47 contracts being traded in the near month call, ATM at a strike price of Rs 360. The average premium was about Rs 14.

Satyam Computer was the next most active options contracts with 34 contracts being traded in the near month call, ATM, at a strike price of Rs 180. The average premium was about Rs 10.

Nifty futures saw a trading volume of Rs 31.32 crore arising out of 1,411 contracts and Nifty options saw 430 contracts getting traded at a notional value of Rs 9.43 crore.

The total turnover of the futures and options segment of the exchange was around Rs 50 crore.