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Launch of Nifty Bank Weekly Options


Posted on 26-May-2016 Comments  1

NSE has announced the launch of weekly option contracts on Nifty Bank Index the second largest traded index derivatives contract on the Exchange with effect from tomorrow, i.e. 27th May 2016. These weekly contracts will be introduced in addition to the existing monthly option contracts. 

Key features of Nifty Bank weekly options:

> Available for trading starting  from 27th May 2016
> 7 weekly expiries in addition to the existing 3 monthly option contracts
> Symbol, strike price, lot size will be same as monthly options contract
> Contact size of 30 units for all expires of the month of June 2016 & 40 units for all expires from the month of July 2016
> Weekly contracts shall expire every Thursday of the week
> All the 12 stock components of the index have derivatives on them.

The following weekly expiries would be available for trading from 27th May 2016.
 

Instrument

Symbol

Expiry Date

OPTIDX

BANKNIFTY

02-Jun-16

OPTIDX

BANKNIFTY

09-Jun-16

OPTIDX

BANKNIFTY

16-Jun-16

OPTIDX

BANKNIFTY

23-Jun-16

OPTIDX

BANKNIFTY

07-Jul-16

OPTIDX

BANKNIFTY

14-Jul-16

OPTIDX

BANKNIFTY

21-Jul-16


Benefits of trading weekly contracts:

> Better and low cost hedging: Weekly options can be used effectively for short term portfolio protection as they tend to be cheaper in comparison to monthly contract premiums
> Flexibility and precision: Weekly options offer flexibility to market participants to trade and hedge precisely the market movements stemming from economic data releases, RBI announcements, economic events, etc.
> Experience a new trading cycle: More number of expiries to provide more number of options trading opportunities. 
user

11551155

Posted on 5/27/2016 9:46:09 AM

Nifty Bank Weekly Options are not useful.

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