ravi
7th February 2009, 06:29 PM
Strike Price Intervals(Stocks)
The Exchange provides a minimum of seven strike prices for every option type (i.e Call & Put) during the trading month. At any time, there are three contracts in-the-money (ITM), three contracts out-of-the-money (OTM) and one contract at-the-money (ATM).
The strike price interval would be:
Price of Underlying Strike Price--------------- interval (Rs.)
Less than or equal to Rs. 50---------------------- 2.50
> Rs.50 to less than or equal to Rs. 250 -----------5
> Rs.250 to less than or equal to Rs. 500 ----------10
> Rs.500 to less than or equal to Rs. 1000 ---------20
> Rs.1000 to less than or equal to Rs. 2500 --------30
> Rs.2500 ----------------------------------------50
New contracts with new strike prices for existing expiration date are introduced for trading on the next working day based on the previous day's underlying close values, as and when required. In order to decide upon the at-the-money strike price, the underlying closing value is rounded off to the nearest strike price interval.
The in-the-money strike price and the out-of-the-money strike price are based on the at-the-money strike price interval.
Strike Price Intervals(Indices)
The number of contracts provided in options on the index is related to the range in which previous day’s closing value of the index falls as per the following table:
Index Level---------- -Strike Interval-------- Scheme of strikes to be introduced (ITM-ATM-OTM)
upto 2000 -------------------25--------------------- 4-1-4
>2001 upto 4000 -------------50 --------------------4-1-4
>4001 upto 6000 -------------50 --------------------5-1-5
>6000------------------------50 --------------------5-1-5
New contracts with new strike prices for existing expiration date are introduced for trading on the next working day based on the previous day's index close values, as and when required. In order to decide upon the at-the-money strike price, the index closing value is rounded off to the nearest applicable strike interval.
The in-the-money strike price and the out-of-the-money strike price are based on the at-the-money strike price.
The Exchange provides a minimum of seven strike prices for every option type (i.e Call & Put) during the trading month. At any time, there are three contracts in-the-money (ITM), three contracts out-of-the-money (OTM) and one contract at-the-money (ATM).
The strike price interval would be:
Price of Underlying Strike Price--------------- interval (Rs.)
Less than or equal to Rs. 50---------------------- 2.50
> Rs.50 to less than or equal to Rs. 250 -----------5
> Rs.250 to less than or equal to Rs. 500 ----------10
> Rs.500 to less than or equal to Rs. 1000 ---------20
> Rs.1000 to less than or equal to Rs. 2500 --------30
> Rs.2500 ----------------------------------------50
New contracts with new strike prices for existing expiration date are introduced for trading on the next working day based on the previous day's underlying close values, as and when required. In order to decide upon the at-the-money strike price, the underlying closing value is rounded off to the nearest strike price interval.
The in-the-money strike price and the out-of-the-money strike price are based on the at-the-money strike price interval.
Strike Price Intervals(Indices)
The number of contracts provided in options on the index is related to the range in which previous day’s closing value of the index falls as per the following table:
Index Level---------- -Strike Interval-------- Scheme of strikes to be introduced (ITM-ATM-OTM)
upto 2000 -------------------25--------------------- 4-1-4
>2001 upto 4000 -------------50 --------------------4-1-4
>4001 upto 6000 -------------50 --------------------5-1-5
>6000------------------------50 --------------------5-1-5
New contracts with new strike prices for existing expiration date are introduced for trading on the next working day based on the previous day's index close values, as and when required. In order to decide upon the at-the-money strike price, the index closing value is rounded off to the nearest applicable strike interval.
The in-the-money strike price and the out-of-the-money strike price are based on the at-the-money strike price.