Nse stock options trading
Nse stock options trading
Equity derivative is a class of derivatives whose value is at least partly derived from one or more underlying equity securities. Options and futures are by far the most common equity derivatives. This section provides you with an insight into the daily activities of the equity derivatives market segment on NSE. 2 major products under Equity derivatives are Futures and Options, which are available on Indices and Stocks.
Instrument wise Volume and Turnover.
* In case of Option Contracts "Turnover" represents "Notional Turnover"
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This section provides information on historical price, traded quantity, volume, settlement prices and open interest data of contract/instrument over a period of time.
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Access the archives of the daily and monthly reports like Bhavcopy, Market Activity and others.
Listing of Underlying and Underlying Information.
This page provides a comprehensive list of the contracts available on indices and stocks in Equity Derivatives. Click on the Company Name to find out the important company information for the last six months. Click on the symbol to see all the contracts of the security.
Monthly Reports.
Information collated at end of the month provides an insight into the trade history, business growth, historical prices and expiries.
About Equity Derivatives.
The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the launch of index futures on June 12, 2000. The futures and options segment of NSE has made a mark for itself globally. In the Futures and Options segment, trading in Nifty 50 Index, Nifty IT index, Nifty Bank Index, Nifty Midcap 50 index, Nifty Infrastructure Index, Nifty PSE Index and single stocks are available. Long term Options on Nifty 50 are also available. More »
Futures & Options (F&O) segment of NSE provides trading in derivatives instruments like Index Futures, Index Options, Stock Options, Stock Futures. More.
Contract Information.
The links listed below provide information on the equity derivative contracts available on indices and securities. Six monthly information about the security is available in "Underlying Information". More.
NSE’s automated screen based trading, modern, fully computerised trading system designed to offer investors across the length and breadth of the country a safe and easy way to invest. The NSE trading system called 'National Exchange for Automated Trading' (NEAT) is a fully automated screen based trading system, which adopts the principle of an order driven market. More.
Clearing & Settlement.
NSCCL carrries out the clearing and settlement of the trades executed in the equities and derivatives segments of the NSE. It operates a well-defined settlement cycle and there are no deviations or deferments from this cycle. It aggregates trades over a trading period, nets the positions to determine the liabilities of members and ensures movement of funds and securities to meet respective liabilities. More.
Risk Management.
NSCCL has put in place a comprehensive risk management system, which is constantly upgraded to pre-empt market failures. The Clearing Corporation ensures that trading member obligations are commensurate with their networth. More.
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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.
Option Chain Extraction For NSE Stocks Using Python.
We are back again with another post on Python. Our last post, “Basic Operations on Stock data using Python” was well received and we are glad to see the number of likes & shares for the post on various quant trading and Python forums. Keep them coming!
Financial market data is a very critical element of a trading system. Be it historical or live data, you need data for various purposes like analyzing stock behavior, backtesting strategies, for paper trading, and for executing live orders in the market.
One can procure data from paid data vendors or use the free data provided by various financial portals and exchanges. In this post, we will explore a way to scrape web data using Python; specifically, we will see how to extract Option chain data for the stocks listed on the National Stock Exchange of India Ltd. (NSE) using the exchange’s website. Before we jump to the Python code let us have an understanding of an Option chain.
What is an Option Chain?
An option chain is a listing of all the call and put option strike prices along with their premiums for a given maturity period. The Option chain data has two sections; namely the Calls section and the Puts section. For each of the section, we have different headers like Outstanding interest (OI), Change in OI, Volume, Implied Volatility (IV), Last Trade Price (LTP), Net Change, and the quotes for the price of the options (premiums).
We have different Option chain tables for different dates of expiry for the same underlying stock. For example, the table shown below refers to the expiry date of 28th September 2017 for the underlying UBL stock.
Python Code for Extracting Option Chain Table.
Step 1: We first import the required libraries; requests, pandas, and BeautifulSoup. We then copy the URL from the NSE site for the option chain of the underlying stock.
We apply the requests. get function from the Python requests library (which is a simple HTTP library) on the URL which creates a response object (named as “page” in the code). One can check whether we were able to successfully execute the function by checking the status code. The contents of the “page” object can be viewed using the content method.
Step 2: In this step, we use the BeautifulSoup library for pulling data from the HTML. Some basic knowledge of HTML is required in this step. We inspect the HTML page to find the location of the option chain table. We apply the “find_all” method on table class and the respective table id.
Step 3: Note that find_all returns a list, so we’ll have to loop through or use list indexing to extract the required content. We first grab the headers of the option chain table. The code for the same is shown below.
The output i. e. the headers of the option chain table are shown below.
Step 4: In this step, we parse the body of the table to grab each row, and extract the values from its columns, and then move on to the next row. There are a few things to note in this section of the code:
We have excluded the chart’s columns as these are not required. The values obtained using the get_text method are in the Unicode format and we need to convert them to string type.
The values are saved in the “new_table” data frame and the final table is saved as a CSV file in the Python’s current working directory.
You can download this entire Python script by clicking on the downloadable button provided below.
To use the Option chain data you need a good understanding of options and the strategies that can be formulated using the Option chain data. We will go deep on this topic in our future posts. Do try out the Python code and drop your valuable feedback or suggestions in our comments section.
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Nse stock options trading
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Beginners Guide to Options.
What is an option?
An option is a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset (a stock or index) at a specific price on or before a certain date.
An option is a derivative. That is, its value is derived from something else. In the case of a stock option, its value is based on the underlying stock (equity). In the case of an index option, its value is based on the underlying index (equity).
· Listed Options are securities, just like stocks.
· Options trade like stocks, with buyers making bids and sellers making offers.
· Options are actively traded in a listed market, just like stocks. They can be bought and sold just like any other security.
· Options are derivatives, unlike stocks (i. e, options derive their value from something else, the underlying security).
· Options have expiration dates, while stocks do not.
· There is not a fixed number of options, as there are with stock shares available.
· Stockowners have a share of the company, with voting and dividend rights. Options convey no such rights.
Some people remain puzzled by options. The truth is that most people have been using options for some time, because option-ality is built into everything from mortgages to auto insurance. In the listed options world, however, their existence is much more clear.
Types Of Expiration.
There are two different types of options with respect to expiration. There is a European style option and an American style option. The European style option cannot be exercised until the expiration date. Once an investor has purchased the option, it must be held until expiration. An American style option can be exercised at any time after it is purchased. Today, most stock options which are traded are American style options. And many index options are American style. However, there are many index options which are European style options. An investor should be aware of this when considering the purchase of an index option.
An option Premium is the price of the option. It is the price you pay to purchase the option. For example, an XYZ May 30 Call (thus it is an option to buy Company XYZ stock) may have an option premium of Rs.2.
The Strike (or Exercise) Price is the price at which the underlying security (in this case, XYZ) can be bought or sold as specified in the option contract.
The Expiration Date is the day on which the option is no longer valid and ceases to exist. The expiration date for all listed stock options in the U. S. is the third Friday of the month (except when it falls on a holiday, in which case it is on Thursday).
People who buy options have a Right, and that is the right to Exercise.
When an option holder chooses to exercise an option, a process begins to find a writer who is short the same kind of option (i. e., class, strike price and option type). Once found, that writer may be Assigned.
There are two types of options - call and put. A call gives the buyer the right, but not the obligation, to buy the underlying instrument. A put gives the buyer the right, but not the obligation, to sell the underlying instrument.
The predetermined price upon which the buyer and the seller of an option have agreed is the strike price, also called the exercise price or the striking price. Each option on a underlying instrument shall have multiple strike prices.
Call option - underlying instrument price is higher than the strike price.
Put option - underlying instrument price is lower than the strike price.
Call option - underlying instrument price is lower than the strike price.
Put option - underlying instrument price is higher than the strike price.
The underlying price is equivalent to the strike price.
Options have finite lives. The expiration day of the option is the last day that the option owner can exercise the option. American options can be exercised any time before the expiration date at the owner's discretion.
A class of options is all the puts and calls on a particular underlying instrument. The something that an option gives a person the right to buy or sell is the underlying instrument. In case of index options, the underlying shall be an index like the Sensitive index (Sensex) or S&P CNX NIFTY or individual stocks.
An option can be liquidated in three ways A closing buy or sell, abandonment and exercising. Buying and selling of options are the most common methods of liquidation. An option gives the right to buy or sell a underlying instrument at a set price.
Options prices are set by the negotiations between buyers and sellers. Prices of options are influenced mainly by the expectations of future prices of the buyers and sellers and the relationship of the option's price with the price of the instrument.
The time value of an option is the amount that the premium exceeds the intrinsic value. Time value = Option premium - intrinsic value.
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Nse stock options trading
We asked readers to mail their queries about stocks they want to buy, sell or hold. Here's the response to their queries.
Narendar Lokwani of StockFundoo advises about good, bad and ugly stocks.
I am interested in trading in stock and nifty options. Can you please guide on how to be profitable in options trading.
O ptions are a major trend in Indian stock markets now, with turnover in options category being significantly higher than that of stocks, index or derivatives category. Just to take an example, on February 23, 2013, turnover for index futures at NSE was Rs 7,220 crore, turnover for stock futures was Rs 16,574 crore and turnover for index options was a whooping Rs 87,077 crore.
So options have become an instrument of choice for traders -- both retail and institutional traders -- in Indian stock markets. As our Finance Minister remarked recently, Indian markets are primarily non-delivery based, meaning majority of trades do not result in deliveries and are cash settled. Options in Indian market are cash settled as well with no delivery taking place at the option expiry date (which is always the last Thursday of every month).
Simply speaking, an option is a bet on direction of either the underlying index e. g. Nifty or a given stock. When a trader is taking a position in options, s/he is either buying or selling an options contract, and is making a bet that either the underlying instrument will rise in price or fall in price before the monthly expiry date. Obviously, if the direction is predicted accurately, the trader stands to hold a profitable position, which s/he can close at or before the expiry date.
Options are basically of two types: call option and put option .
A buyer for a call option is taking a position that underlying instrument e. g. the stock or Nifty index, would rise in value before expiry date.
A buyer of put option is taking the opposite position that the underlying instrument e. g. the stock or Nifty index, would actually fall in value before expiry date.
However, there are few more things to keep in mind, before you jump in options trading. One should be aware of the strike price and days remaining before expiry as well.
Options decay in value as their price is dependent on variable known as theta, which is also known as the rate of decay. Simply speaking, if you are an options buyer, your options will lose a little bit of value each day, even if the underlying instrument is not moving at all, due to time decay.
Due to this reason, professional traders or large institutions are biased towards options selling, rather than options buying, as they can benefit from this time decay if underlying instrument is not moving at all. However, option selling is akin to selling insurance and hence is detrimental to an individual retail trader as the potential liability can be significant if volatility increases overnight.
Another way to benefit from options is to take a combination trade in options.
A trader expecting the stock or index price to change dramatically in next few days can buy an options straddle .
A long straddle involves purchasing both a call option and a put option on the same stock or index at the same strike price and expiry date.
For example, if Infosys is coming up with its quarterly results and investors are not sure whether it will be a positive result or not, one can buy a call option and put option at same strike price, preferably closer to current stock price. If results are good, call options would rise in price and would make up a profitable trade, else if results are less than expected put options would result in profits for the trader.
Another simple way to trade in options for a trader already holding a stock is to execute a covered call .
This strategy has to be adopted in bearish markets for stocks which are not expected to rise in price. If a trader is holding a stock in cash segment, he can sell the corresponding call options for the stock. When the stock declines in price as expected, the call options would be worthless and seller of call options would get to keep the option premium which s/he would have received while selling the call options. If the stock goes up, since the trader is already holding the stock in cash market, s/he would get compensated with the price rise of his holdings. This is a useful strategy for slightly bearish markets.
This is a simple primer, however options trading is a complicated subject and one needs to do significant research before jumping into options trading. With the high options volumes witnessed in Indian markets, options trading is much more coveted than cash trading or futures trading and here to stay for long.
Disclaimer: This article is for information purpose only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products /investment products mentioned in this article or an attempt to influence the opinion or behavior of the investors /recipients.
Any use of the information /any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.
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C an you please tell me why Delta Corp is underperforming as I am holding 3263 shares 140 since October 2010. Will I get my investment price within 2 years?
D elta Corp is a concept stock and is the only listed Indian company in casino business. Delta Corp operates two offshore casinos in Goa and another onshore casino is coming up in Daman region. The current casino gaming capacity is about 700+ gaming consoles. Delta Corp is launching its onshore gaming operations in the Union Territory of Daman as well. Third offshore casino is also set to be operational in Goa shortly.
From its Goa based offering, Casino Royale is currently India's largest live offshore gaming casino with 480 gaming positions. Casino Caravela is another live casino offering 190 gaming positions.
In hospitality space, Delta Corp owns Daman Hospitality Pvt. Ltd (DHPL), which owns the largest resort and convention complex in Daman. The hotel is in the five-star deluxe category with 189 rooms, 29,000 sq ft of indoor events and meeting space and 70,000 sq ft of outdoor pools and events space.
Latest revenues for Delta Corp were sales of Rs 103.4 crore and a net profit of Rs 14.86 crore for the quarter ended Dec '12. This is lower in comparison to YoY revenues for Delta Corp. For the Dec 2011 quarter the revenues were Rs 146.37 crore and net profit was Rs 23.67 crore. This slowdown in revenues and profits has impacted the stock price.
Looking at charts, Rs 142 was the highest price ever for Delta and you seem to have entered at its peak. Technically support for Delta Corp is at 51, and it would be a tough bet to get Rs 140 in the near future. Resistance levels are at Rs 84 and at Rs 110. You should aim for Rs 110 in next 12-18 months.
Please provide your views on TransGene Biotek. I am holding this stock from a very long time.
T ransgene Biotek is a very interesting microcap stock. It has two decades of biotech expertise and unfortunately markets don't value stocks like this properly, because of lack of visibility and business model.
Transgene began as a firm manufacturing and selling diagnostic kits and moved on to biotech research, including the research and development of vaccines. One of its first major successes was development of genetically engineered Hepatitis B vaccine technology which was sold to Serum Institute, Pune in 1999, which continues to sell vaccines based on this technology.
It has a sizable portfolio of under development drugs and any more blockbuster success from this portfolio will move the scrip in positive direction.
Looking at charts, the firm has seen crazy heydays when stock was worth Rs 300 apiece, and currently it is trading at 99 per cent discount to that price. So what has gone so wrong for Transgene?
One, promoter shareholding is less than 10 per cent. That sends the signal that effectively no one really owns the company now.
Secondly, there was an attempt at delisting, which failed. At Rs 2.63 a share, and market cap of Rs 17 crore, effectively one is getting all the IP and technology for a very small price.
Thirdly, large scale selling by GDR holders, the foreign ownership has come down from 73.44 per cent to 27.44 per cent and this has crashed the price to these penny stock levels.
Overall, support may come at Rs 2.1, and now it is as good as a lottery ticket to hold. Any more blockbuster drugs to unlock may cause the series of upper circuits once again. Existing shareholders should hold, however new investments is only for investors with high-risk appetite.
I have 1208 shares of Jain Irrigation Systems at Rs 112 per share. Please suggest what to do, I can wait for 2-3 years for good returns?
J ain Irrigation is a marquee firm in Drip Irrigation technology and has proven products and technology in this space. The firm has many firsts to its name. Jain irrigation is pioneer of micro irrigation systems in India and is the largest irrigation company in India.
Other than its irrigation division, in its Pipe Division, the firm is the largest manufacturer of Plastic Pipes in India. In its Plastic Sheet Division, firm is largest manufacturer of PVC & PC sheets in India and is the only manufacturer producing widest range of Plastic Sheets (PC & PVC) under one roof. Firm has a successful food processing business as well and is initiating new business in solar panels as well.
The challenge that Jain Irrigation faces is over dependence on making sales through government subsidies and hence the firm is making a transition away from this business model. For the latest quarter profits have in red. Revenue is flattish from past five quarters and new business model is yet to make serious inroads. Promoter holding has also come down in last quarter from 31 per cent to 27.46 per cent. The firm is a regular dividend paying company.
Technically speaking, it has a support at 60 and can be expected to reach Rs 90 levels from here on. One can average a bit here and new investors can take an entry here with a SIP kind of investing in mind.
I am holding 100 shares of SHREE RENUKA SUGAR at Rs 55 per share. Could you please suggest whether to average at current price for good profits in next 1 year?
S hree Renuka Sugars is one of leading manufacturer of sugar in India, and one of the largest sugar refiners in the world. The company operates eleven integrated sugar mills globally (four in Brazil & seven in India) and two port based refineries in India.
The company operates eleven mills globally with a total crushing capacity of 20.7 million tonnes per annum (MTPA). The company operates seven sugar mills in India with a total crushing capacity of 7.1 MTPA and two port based sugar refineries with capacity of 1.7 MTPA.
In its ethanol business, firm manufactures fuel grade ethanol that can be blended with petrol. Global distillery capacity for ethanol is 6,240 KL per day (KLPD).
In its power generation business, firm produces power from sugar cane by-products for its own consumption and also for sale to the state grids in India and Brazil. Total power cogeneration capacity is 555MW with exportable surplus of 356 MW.
Quarterly revenues of Renuka are in uptrend and have grown from Rs 697 crore in Dec 11 quarter to Rs 1846 crore in last quarter Dec 12. Firm is trading close to its book value of Rs 26.4 and promoter holding stands at 38.06 per cent which is slightly higher than 37.36 per cent two quarters ago.
Technically speaking, sugar stocks are consolidating for long and Renuka is currently at 75 per cent discount to its peak price of Rs 120. Technical Support is nearby at Rs 26 and one can average this stock at the current price or even take a fresh entry.
The Rangarajan committee report for total decontrol of sugar sector will benefit the sugar stocks tremendously.
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