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Re: Using index options
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Re: Using index options - May 8th, 2016

Originally Posted by sunandaC View Post
There are potentially innumerable ways of trading on the index options market. However we shall look at eight basic modes of trading on the index futures market:


H5 Have portfolio, buy puts


S3 Bullish index, buy Nifty calls or sell Nifty puts

S4 Bearish index, sell Nifty calls or buy Nifty puts

S5 Anticipate volatility, buy a call and a put at same strike

S6 Bull spreads, Buy a call and sell another

S7 Bear spreads, Sell a call and buy another


A3 Put-call parity with spot-options arbitrage

A4 Arbitrage beyond option price bounds
Hey sunanda, thanks for letting us know about the ways of trading in index options. Well, i have also got a document where you would find more detailed explanation on index option, so please download and check it.
Attached Files
File Type: pdf understanding_index_options.pdf (193.0 KB, 1 views)
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