Bullish on index

Anup Menon

INDEX Options: There was some revival of trading interest in the Nifty index options during the course of the week.

Three call options managed to find a place among the top 10 traded options. The most actively traded call was the option with expiration in November and a strike of 1000. The index closed the week at 997.60, indicating that the option is marginally out of the money. The premium for the option fluctuated between a weekly high of Rs 20 to a low of Rs 4. Aggregate traded volumes in the contract stood at around 1818 contracts.

The second most actively traded Nifty call option was the contract with expiration in November and a strike of 980. Based on the latest close of the index, the option is in the money at present. Aggregate traded volumes stood at around 1,608 contracts. The price of the option fluctuated between a weekly high of Rs 31 and a low of Rs 8. The option with expiration set to November and a strike of 960 was the third most actively traded contract. The option is deeply in the money at present. Aggregate traded volumes in the contract stood at around 1260 contracts. The put call ratio on the contract seems to indicate that the market is bullish on the index.

In the case of Nifty put options, four contracts managed to find a place in the top 10 traded puts. The most actively traded contract was the one with expiration set to November and a strike of 980. The option is out of the money at the moment. Aggregate volumes in the contract stood at around 801 contracts. The premium on the contract fluctuated between a high of Rs 40 and a low of Rs 14 during the week. The second most actively traded contract was the November maturity with a strike of 960. Aggregate volumes in the contract stood at around 781 contracts. The option is deeply out of the money at present.

Stock Options - Calls

Among the stock options that were actively traded were contracts on Satyam Computers, Reliance Industries, Reliance Petroleum, Digital Equipment and ACC. This week, the November maturity contract with a strike of 260 on Reliance Industries was the most actively traded among individual stock call options. The option premium had a range of Rs 12, based on the weekly high and low price. The stock closed in the spot market on Friday at Rs 263, indicating that the option was marginally in the money. Aggregate volumes in the contract stood at around 1,514 contracts.

The option contract with maturity in November and a strike price of 140 on Satyam Computers was the second most actively traded call option. The stock closed in the spot market at Rs 145.20, indicating that the option marginally in the money at present. Aggregate volumes in the contract stood at around 1,304 contracts. The put call ratio on the contract indicates that the market is bullish on the stock.

The option on Reliance Petroleum with expiration in November and a strike price of 30 was also among the most actively traded contracts during the week. Based on the latest close in the spot market, the option is marginally in the money. Aggregate volumes in the contract stood at around 926 contracts. The weekly high and low price for the contract stood at around Rs 3 and 2 respectively. The put call ratio on the option indicates that the market is bullish on the stock.

Stocks Options - Puts

Among the most actively traded put options on individual stocks were Satyam Computers, Reliance Industries, Reliance Petroleum and Infosys Technologies.

The most actively traded contract was the option on Satyam Computers with a strike of 140 and expiration in November. Aggregate volumes in the contract stood at around 635 contracts. Based on the stocks latest close in the spot market, the option is out of the money at the moment.

The option on Reliance Industries with a strike of 260 and expiration in November was the second most actively traded contract during the week. Based on the latest close in the spot of market, the option is marginally out of the money at present. Aggregate volumes in the contract stood at around 607 contracts.