Subdued trading

Anup Menon

INDEX Options: As was the case in the previous week, trading interest in Nifty index options remained subdued during the week.

Only two call options managed to find a place among the top 10 traded options. The most actively traded call was the option which expired in October and had a strike of 980. The index closed on the expiration date at 983.20. The weekly low price of the option was Rs 2. Hence few investors who managed to get the option at its lowest price could have closed out their position profitably. Aggregate traded volumes in the contract stood at around 938 contracts.

The second most actively traded Nifty call option was the contract which expired in October and had a strike of 960. Investors who managed to catch the lower range of prices in the option could have closed out their position profitably. The weekly high price for the option was Rs 32. Aggregate traded volumes in the contract stood at around 600 contracts. The call option on the Nifty with expiration set to November and a strike price of 1000 was the third most actively traded contract.

Aggregate volumes in the contract stood at 464 contracts. The option is out of the money at present.

In the case of Nifty put options, only one contract managed to find a place in the top 10 traded puts. The lone put in the list was the one which expired in October and a strike of 980. Aggregate volumes in the contract stood at around 569 contracts. Based on the Thursday's close in the spot market, the option expired out of the money. The option premium on the contract touched a high of Rs 14 during the course of the week.

Stock Options - Calls

Among the stock options that were actively traded were contracts on Satyam Computers, ACC, Larsen and Toubro and Reliance Industries among others. As we have seen in the past few weeks, call options on Satyam Computers were the most actively traded individual call options. The most actively traded among them was the contract which expired in October and had a strike price of 150. The option premium had a range of around Rs 20 based on the weekly high and low price. The stock closed in the spot market on expiration date at Rs 143, indicating that the option holders would not have exercised their options. Aggregate traded volumes in the contract stood at around 2076 contracts.

Satyam Computers also took the second spot among the most actively traded options. The option had a strike of 160 and expired in October. The stock closed in the spot market at Rs 143.20, indicating that the option expired out of the money. The weekly high price for the contract was Rs 10. Aggregate volumes in the contract stood at around 1617 contracts.

The option on Satyam Computers with a strike of 150 and an expiration in November was also among the top 10 traded contracts. Based on the latest close in the spot market, the option is out of the money at present. Aggregate volumes in the contract stood at around 624 contracts. The weekly high and low price for the contract stood at around Rs 22 and Rs 9 respectively. The put call ratio on the option indicates that investors are bullish on the stock.

Stocks Options - Puts

Among the most actively traded put options on individual stocks were Satyam Computers, Larsen and Toubro, Infosys Technologies and Reliance among others.

The most actively traded contract was the option on Satyam Computers with a strike of 150 and expired in October. Aggregate volumes in the contract stood at around 865 contracts. Based on the stocks close in the spot market on expiration date, the contract was in the money. Investors would have had the opportunity to exercise their option.

The option on Satyam Computers with a strike of 150 and expiration in November was also actively traded during the course of the week. Based on the latest close in the spot market, the option is in the money at present. The option on Reliance Petroleum with expiration in November and a strike of 30 also attracted market interest. The stock closed in the cash market at Rs 31, indicating that the option is marginally out of the money at present. Aggregate volumes in the contract stood at around 132 contracts.