Options this week -- Satyam active

Anup Menon

Index Options: Trading interest in the Nifty Index options during the week was relatively low. No index option contract managed to find a place among the top 10 traded contracts. The most actively traded Nifty index option contract was the option with expiration in November and a strike of 1040. The Index closed the week at 1059 indicating that the option is in the money at present. The premium for the option was relatively volatile with the weekly high low range lying between Rs 34 and Rs 14. Aggregate traded volumes in the contract stood at around 606 contracts.

The second most actively traded Nifty call option was the contract with expiration in November and a strike of 1000. Based on the latest close of the Nifty, the option is deeply in the money. Aggregate traded volumes stood at around 585 contracts. The pricing of this option displayed more volatile trends than the contract with a strike of 1040. Call premiums ranged between a high of Rs 72 and a low of Rs 38 during the week.

The option with expiration set to November and a strike of 1060 was the third most active index call option. The option is marginally out of the money at present. Aggregate traded volumes in the contract stood at around 496 contracts. The put call ratio on the contract seems to indicate that bullish on the index.

In the case of Nifty put options, two contracts managed to find a place in the top 10 traded puts. The most actively traded contract was the one with expiration set to November and a strike of 1020. The option is out of the money at the moment. The premium on the contract fluctuated between Rs 11 and Rs 1 during the week. The second most actively traded contract was the November maturity with a strike of 1000. Aggregate volumes in the contract stood at around 313 contracts. The option is deeply out of the money at the moment.

Stock Options - Calls

Among the stock options that were actively traded included contracts on Reliance Industries, Reliance Petroleum, Larsen and Toubro, Satyam Computers, and ACC among others. This week the November maturity contract with a strike of 190 on Satyam Computers was the most actively traded among individual stock call options. The pricing of the option was volatile with prices ranging from a high of Rs 29 to a low of Rs 5. Based on the latest close of the stock in the spot market, the option is in the money at present. Aggregate volumes in the contract stood at around 1639 contracts.

The option contract with maturity in November and a strike price of 35 on Reliance Petroleum was the second most actively traded call option. The stock closed in the spot market at Rs 32.50, indicating that the option is marginally out of the money at present. Aggregate volumes in the contract stood at around 1350 contracts. The put call ratio on the contract indicates that the market sentiment is heavily in favour of the bulls.

The option on Reliance Industries with expiration in November and a strike price of 300 was the third most actively traded contract during the week. 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 1329 contracts. The price of the option traded within a fairly wide band with a range of around Rs 12 (high-low price). The put call ratio on the option indicates that the market is bullish on the stock.

Stocks Options - Puts

Among the most actively traded put options on individual stocks were Satyam Computers, Reliance Industries, Reliance Petroleum, ACC and Larsen & Toubro among others.

The most actively traded contract was the option on Satyam Computers with a strike of 190 and expiration in November. Aggregate volumes in the contract stood at around 645 contracts. Based on the stocks latest close in the spot market, the option is out of the money at the moment.

The option on Reliance Industries with a strike of 280 and expiration in November was the second most actively traded contract during the week. Based on the latest close in the spot of market the option is out of the money at the moment. Aggregate volumes in the contract stood at around 564 contracts. The put call ratio on the contract indicates that investors are bullish on the stock.