Mastering Derivatives: Asymmetric payoff, asymmetric risk in options
Business

Mastering Derivatives: Asymmetric payoff, asymmetric risk in options

[ad_1] Options have asymmetric payoff. Yet, options lose more than they gain for a given change in the underlying (referred to as asymmetric effect). These

SEBI to issue directions on derivatives contracts expiry this month
Business

SEBI to issue directions on derivatives contracts expiry this month

[ad_1] The Securities and Exchange Board of India will issue directions this month over expiry of equity derivatives contracts after analysing the comments on the

Mastering Derivatives: When Short Call Is Preferred To Short Futures
Business

Mastering Derivatives: When Short Call Is Preferred To Short Futures

[ad_1] Previously in this column, we discussed an aggressive strategy initiated to take advantage of a potential bull exhaustion. The strategy involved going short on

Mastering Derivatives: Understanding An Aggressive Bet On Bull Exhaustion
Business

Mastering Derivatives: Understanding An Aggressive Bet On Bull Exhaustion

[ad_1] Breakout trades can give handsome returns. So can reversal trades. This week, we discuss a reversal trade considered aggressive, and therefore, risky, taking a

Mastering Derivatives: Understanding rolling switch trade
Business

Mastering Derivatives: Understanding rolling switch trade

[ad_1] A covered call involves a long position in an underlying and a short position in an out-of-the-money (OTM) call on the underlying. What if

Mastering Derivatives: Strategies with Mid-cap Select Index
Business

Mastering Derivatives: Strategies with Mid-cap Select Index

[ad_1] The NSE recently announced that the permitted lot size of the derivative contracts on the Midcap Select Index will increase from 120 to 140

Mastering Derivatives: Understanding delta-based OI
Business

Mastering Derivatives: Understanding delta-based OI

[ad_1] In a consultation paper issued recently, SEBI proposed a revision in the calculation of open interest (OI) from notional basis to future-equivalent or delta-based

Mastering Derivatives: Is Monday better than Thursday?
Business

Mastering Derivatives: Is Monday better than Thursday?

[ad_1] The futures and options segment has seen several changes in recent times. The latest change is the shifting of the contract expiry date on

Mastering Derivatives: Covered call — how much to cover?
Business

Mastering Derivatives: Covered call — how much to cover?

[ad_1] Previously in this column, we discussed why setting up a covered call strategy on the Nifty Index is different from that on individual stocks.

Derivatives accounting hit: IndusInd Bank’s stock loses about a quarter of its value in a single day
Business

Derivatives accounting hit: IndusInd Bank’s stock loses about a quarter of its value in a single day

[ad_1] The estimated hit of about ₹1,500 crore to the balance sheet due to discrepancies in the accounting of derivatives portfolio, shorter tenure approved by

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