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Sunanda K. Chavan
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Using index options - October 1st, 2010

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:

Hedging

H5 Have portfolio, buy puts

Speculation

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

Arbitrage

A3 Put-call parity with spot-options arbitrage

A4 Arbitrage beyond option price bounds
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Jitendra Mazee
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Re: Using index options - May 8th, 2016

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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:

Hedging

H5 Have portfolio, buy puts

Speculation

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

Arbitrage

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.
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File Type: pdf understanding_index_options.pdf (193.0 KB, 1 views)
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