Derivatives: Some interesting trends
(Jul 6, 2002)
Introduction of derivative products has been one of the most significant developments in the history of Indian capital markets. It's been almost 2 years since introduction of the first derivative product, index futures. The response to the same in such a short span has been encouraging, especially considering the complexity of the products. Let us take a look at some interesting trends in the derivative markets.
(Special Report)

Stock futures: Return of the lenders
(Dec 5, 2001)
In the previous article we had introduced futures on individual stocks. In this article we try to understand the pricing of futures and how they can be used for arbitrage and leveraging.

Stock futures: An introduction
(Nov 27, 2001)
In a swift move, Indian Stock exchanges introduced stock futures just before Diwali on November 9, 2001. In June last year Index futures had been introduced. Subsequently, in July 2001 stock options were introduced. With the introduction of stock futures, the futures and options family is now complete.

Individual stock options: Go from SEBI
(Jun 22, 2001)
SEBI has released the list of stocks on which individual stock options would be allowed. 31 stocks managed to clear the criteria set up SEBI to be eligible.

Index options: The workings (Part II)
(Jun 11, 2001)
In the previous article we had considered cases where Rajiv and Ajay had bought Call and Put options. But now we will look into what happens when they write options. Writing an option i.e. creating a fresh sell position. The writer or the person who has a short position gets into an obligation to sell or buy the underlying depending on a call or a put option that the person has written respectively.

Index options: The workings (Part I)
(Jun 7, 2001)
The fallout of the recent scam was that the watchdog SEBI speeded up market reforms. The effort is to separate the cash and the forward markets. While rolling settlement will be introduced and carry forward banned from July 2, SEBI is strengthening the derivatives markets by introduction of more and more instruments. The latest to be introduced are the index options that were introduced by the exchanges recently.

Options Strategy (PART II)
(Mar 17, 2001)
A long straddle is used to counter volatility in the market. It involves buying a call and a put at the same price and same expiry date. If the stock or index price is very near to the strike price it may result in a loss. A straddle becomes profitable only where there is huge movement in the market. But the best part of the straddle is that it is profitable irrespective of the direction in which the market moves.
(Special Report)

Options: Trading strategies (Part I)
(Mar 12, 2001)
Buy low; sell high – simple, and an age-old formula for making money in the stock markets when the sentiment is bullish. Sell high, buy low a similar formula for making money when the sentiment in bearish. What do you do when the markets are stagnant, range bound or volatile? Well options could provide some of the answers.
(Special Report)

Derivatives: More options
(Dec 19, 2000)
It’s been about half a year since derivatives have been trading on the both the exchanges (NSE and BSE). Initially only three contracts have been introduced by both the exchanges. The financial community has been watching the derivatives markets very keenly. World over the derivative markets are bigger than the equity markets. The interest has grown gradually. Initially, the volumes were just 100 contracts but for the last month the volumes traded are in the region of 1000 contracts.

Options - Limited risk, unlimited profits : (Understanding Derivatives - Part IV)
(Jun 8, 2000)
Having seen the mechanics of futures, we shall delve into what an option is. For the purpose, we shall revisit the story of Chandar the rice farmer. In the example of Chandar, we find that he is quite comfortably placed now. But let us consider some possible risks that Chandar faces.
(Special Report)