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Roll Over

Rollover is carrying forward a particular months futures positions to the next month. This is done by closing the existing futures portion of the current month and simultaneously taking a similar position in the subsequent series.

INDEX

Symbol
Future Price
Price Chg%
OL Chg%
Share Rolled
Rollover
RO Cost

26,807.8

0.22

2.97

3120

9.7

0.61

24,103.3

0.21

-7.51

10243870

45.74

0.31

58,255

0.11

-7.89

1403160

48.12

0.69

72,125

0.03

-8.46

6475

35.77

0.26

14,466

-0.55

-12.81

1090800

42.94

0.1

STOCKS

Symbol
Future Price
Price Chg%
OL Chg%
Share Rolled
Rollover
RO Cost

151.61

5.14

-2.63

106807050

47.04

-0.03

5,435.4

5.12

4.39

6314700

52.73

0.37

161.44

4.05

-6.07

107390000

47.11

0.46

13,779

3.94

23.78

2558250

49.86

0.63

10,912.5

3.8

-8.08

1128200

59.06

-0.58

3,187

3.74

7.47

14444800

55.19

-0.53

3,570

3.54

21.48

9267300

48.05

0.7

1,140.4

3.41

2.6

3758150

54.59

0.57

1,126.3

3.39

6.17

12248150

47.42

0.68

1,119.7

3.26

-1.63

7409325

50.49

0.11

1,130.2

2.87

7.11

11208450

47.2

0.6

18,446

2.53

-32.45

166475

59.59

-0.24

3,639.7

2.5

-4.4

3032925

57.89

-1.13

942.3

2.45

6.89

14905600

54.1

0.55

621

2.17

-27.18

20462400

67.28

-1.64

1,353.9

2.07

-33.52

11343750

64.07

-1.1

1,384.5

1.95

2.48

6947600

54.92

-0.96

1,857.2

1.76

11.04

6073275

48.74

-0.33

1,411.3

1.72

-8.18

5374000

36.04

-0.06

3,823.9

1.59

-10.72

289050

48.09

0.38

2,147.5

1.35

-21.07

5602500

55.05

0.11

1,969.1

1.33

11.78

4638700

43.1

0.3

3,263.5

1.3

-22.81

2690550

51.92

-4.36

1,033

1.25

17.08

7635000

47.79

0.41

1,598.8

1.24

1.88

4319000

41.97

-0.17

5,637

1.23

12.03

2788000

45.02

-0.17

9,893

1.23

2.15

2613675

54.14

-0.7

1,553.9

1.15

-11.29

8082800

45.43

0.39

1,996.8

1.11

1.9

3859350

54.68

-0.19

948.6

1.11

9.5

7115625

42.76

0.16

1,759

1.09

-38.21

1816000

65.31

-1.43

1,388.5

1

8.28

90313300

47.83

0.66

945.15

0.99

-15.53

2901600

49.94

0.95

826.95

0.9

9.06

9865200

44.78

0.49

2,180.7

0.86

-6.94

11351100

47.2

0.42

1,030.1

0.85

14.62

28672875

52.12

0.08

1,044.55

0.79

0.07

56776500

51.42

0.56

409.55

0.65

6.29

115326000

45.55

0.35

298.8

0.58

-20.85

42752250

66.66

-0.81

2,645.5

0.56

9.31

4029600

48.26

0.71

797

0.54

9.56

257413000

54.61

0.62

4,200

0.54

7.51

10404100

50.85

0.56

804

0.53

-8.73

3322275

46.78

-0.74

1,552

0.53

-6.29

4061700

55.78

0.67

4,535

0.51

-9.76

2497875

60.59

0.14

353

0.51

-6.15

57089600

59.02

0.43

40,630

0.4

-1.47

194550

52.05

0.36

6,996

0.38

-15.28

1846125

62.76

-0.25

1,763

0.38

-25.25

4369750

53.43

0.39

622.35

0.36

-8.92

26047100

46.76

0.27

1,504.9

0.35

-1.75

13365675

51.86

0.29

175.62

0.31

-25.36

303477000

68.07

-2.29

8,592.5

0.25

16.52

1760625

51.06

0.61

11,481

0.2

5.99

1526100

43.59

0.75

1,103.5

0.2

-6.37

7974000

55.87

0.41

363.95

0.17

-5.77

28455525

43.3

0.34

10,501

0.17

-7.15

136200

40.37

0

7,601

0.15

10.93

2454800

46.16

0.8

1,440

0.15

1.13

10001950

56

0.27

4,916

0.14

-10.46

3981150

61.67

-1.09

240.88

0.14

-22.48

29196475

57.58

-2.02

4,038.8

0.11

-25.62

1828500

73.67

-1.77

79.45

0.08

-3

279483575

53.85

0.37

280.1

0.07

8.26

74216025

46.21

0.49

5,051

0.05

5.31

1045625

54.2

0.61

174.85

0.05

-21.87

71339850

52.94

0.2

108

0.04

0.88

185704000

47.02

0.7

739.45

0.02

-21.55

5864425

60.1

-2.73

144.48

0.02

-4.79

55988400

48.9

0.58

318.55

0.01

8.98

30432000

42.36

0.56

1,314.8

0

8.31

81202500

47.87

0.66

508

0

14.02

33334875

39.48

0.47

619.5

0

-13.4

10704050

50.68

0.51

1,453.9

-0.01

-10.59

12704100

59.96

0.34

3,125.2

-0.02

-0.81

9509250

53.15

0.62

376.75

-0.03

2.48

26221050

50.01

0.47

127.62

-0.07

-20.99

53299975

69.54

-4.25

549.65

-0.09

0.65

18187000

50.6

0.37

1,232.4

-0.11

-2.04

32263650

58.59

-0.26

34,000

-0.14

-4.98

308350

51.38

0.58

1,822.4

-0.14

0.43

3541200

53.69

-0.02

5,420

-0.15

17.82

835625

38.1

0.7

108.13

-0.19

3.47

80861175

42.51

0.75

1,793.5

-0.2

11.24

10975625

51.14

0.58

290.1

-0.22

-7.08

101856075

51.59

0.72

2,266

-0.22

-6.58

3098700

43.39

0.68

238.45

-0.22

5.96

101557600

46

0.64

79.26

-0.22

-10.03

70222800

46.84

0.3

423.9

-0.23

4.58

18612500

53.42

-0.73

1,309.5

-0.23

-11.77

5726625

52.6

-0.07

3,891.7

-0.24

-3.88

4764800

46.21

-0.32

401.55

-0.24

5.54

42359625

32.04

0.44

1,525

-0.25

-13.38

13287000

51.33

0.66

4,356.6

-0.25

0.84

3032250

38.24

0.5

725.05

-0.28

1.75

17499000

54.52

0.53

91.85

-0.31

-26.86

75537700

66.91

-0.03

125.14

-0.35

-18.6

53679000

54.87

0.17

574.5

-0.38

-7.59

18640500

59.1

0.24

1,140.2

-0.4

-14.9

4861875

53.62

-0.8

12,055

-0.42

-7.59

2258050

61.7

-0.27

229.4

-0.43

-7.77

74528700

48.05

0.5

24.89

-0.43

-2.55

849434300

50.93

0.68

1,494.3

-0.47

-6.24

12848750

50.91

-0.64

274.4

-0.5

0.57

31605000

45.65

-0.51

324.75

-0.52

-14.24

61827500

53.49

0.13

423.65

-0.52

-10.41

10467500

32.78

0.17

4,298.6

-0.52

2.35

4668475

45

0.13

2,831

-0.54

-8.67

5972400

44.9

-0.47

1,040.6

-0.58

2.52

7163000

49.02

0.66

40,650

-0.61

-18.65

202040

55.15

0.4

25,920

-0.61

20.06

286025

47.02

-0.67

4,306.1

-0.64

7.02

2062800

49.49

0.52

5,229.5

-0.68

-7.48

1491500

45.89

0.42

1,860.4

-0.69

0.81

12204500

45.2

0.41

1,181

-0.69

-2.91

7219500

52.6

0.65

2,239.7

-0.7

-18.36

1160225

47.5

-0.49

1,902.5

-0.71

-0.42

2268000

44.69

0.67

1,373.4

-0.71

18.96

47746250

51.81

0.74

254.8

-0.74

15.57

142471175

45.98

0.66

1,726.1

-0.74

-0.84

2962050

43.82

0.31

6,705

-0.74

3.84

1740300

39.47

0.11

129.5

-0.75

3.95

195284250

46.68

0.5

978

-0.76

9.49

52137750

48.09

0.44

2,644.6

-0.76

-16.59

6883250

54.76

0.57

1,047

-0.77

-17.96

5776550

55.97

-0.2

878.95

-0.81

-7.48

3517275

49.03

-1.02

2,728.3

-0.83

-10.73

2569000

59.26

-0.81

2,355.4

-0.88

-23.6

3709400

55.24

-0.53

391

-0.89

2.01

23510400

46.08

0.84

3,044.7

-0.9

6.14

10584795

41.62

0.56

424.15

-0.91

-6.16

50426400

53.58

0.22

1,639.2

-0.96

-2.47

2276950

55.9

-0.68

1,799.6

-0.96

-5.63

17025425

56.23

0.63

169.66

-0.98

-2.77

61701600

31.35

0.2

2,095

-1.03

-15.87

41656500

70.01

-1.42

89.64

-1.04

-15.94

55270400

52.85

0.47

1,103.6

-1.05

-37.66

33706000

70.09

-2.13

3,000

-1.08

-25.42

4764375

63.91

-0.23

2,473.3

-1.09

-14.65

3306150

56.69

-1.31

433.45

-1.09

-24.52

36003500

57.07

0.43

1,763

-1.1

7.18

9052800

53.86

0.85

1,044

-1.1

-32.7

89344000

66.28

-0.67

1,320

-1.11

-19.62

7190075

60.65

-0.6

394.8

-1.15

-1.36

60106900

43.72

0.26

2,463.5

-1.16

-10.7

1777000

52.51

0.71

188.4

-1.17

9.25

161675250

49.28

0.53

916.75

-1.17

-5.44

31705800

57.82

0.56

491.25

-1.17

-3.8

11083350

46.13

0.79

169.85

-1.19

-0.18

0

0

N/A

3,219.6

-1.21

-19.48

7841025

62.56

-0.16

173.49

-1.21

-6.25

49075200

55.03

-0.05

408.5

-1.24

8.9

26928450

47.61

0.55

336.9

-1.26

-9.52

13517500

46.38

0.41

2,155.4

-1.26

2.13

7078125

41.46

0.49

584.4

-1.33

-2.17

26313100

50.31

0.7

57.34

-1.34

-22.15

281978100

60.99

-0.2

835.75

-1.34

-17.13

9425000

56.66

0

1,368

-1.34

-29.52

4696250

66.67

-3.47

548.65

-1.34

-19.42

7857450

47.54

0.37

408.45

-1.35

-16.11

12167925

45.16

0.85

416.2

-1.36

1.59

25542500

52.23

0.43

1,855.4

-1.38

10.02

36578325

47.09

0.24

468.25

-1.4

-9.8

12908750

40.61

0.79

388.6

-1.42

12.19

38619300

43.87

0.59

352.4

-1.46

2.53

78837000

43.66

0.55

301.8

-1.46

12.99

32628125

42.94

0.67

436

-1.5

-2.99

46415700

41.71

0.47

1,444.8

-1.5

-12.86

16438200

56.41

-0.72

1,083

-1.54

3.58

4400500

55.08

0.77

407.9

-1.55

2.78

71788650

46.91

0.58

1,614.5

-1.65

-9.19

5164950

57.13

-0.39

590

-1.65

-11.44

21698970

54.13

-0.31

107.15

-1.66

-7.46

60346000

45.75

0.84

240.1

-1.69

-0.69

39728425

52.57

0.41

283.3

-1.7

-17.29

22896900

53.45

0.67

370

-1.71

-13.94

28813125

44.75

0.27

1,740

-1.71

1.23

6280125

51.34

0.4

3,752.1

-1.75

4.88

3400950

59.03

-0.59

9,551

-1.76

-4.83

1427625

55.69

0.51

311

-1.78

0.12

31898225

53.2

0.43

84.51

-1.82

-3.56

209844000

47.47

0.86

143.85

-1.84

-0.99

66758250

40.87

0.56

4,855

-1.88

-13.03

3292250

62.88

-2.02

1,448

-1.92

-26.77

4186000

61.68

-1.75

14.07

-2.01

-1.62

3533866950

47.9

0.78

953.95

-2.25

-3.56

5174675

41.61

0.3

116.52

-2.3

-22.1

27227900

56.68

0.44

284.15

-2.33

0.85

51047300

51.9

0.79

1,788.1

-2.35

1.79

3813250

52.36

0.85

17,462

-2.37

6.81

485950

43.87

0.51

390.2

-2.46

-15.26

18352800

65.3

0.02

954.5

-2.46

-9.32

37832200

65.63

-0.14

407.4

-2.54

-26.02

11540200

53.09

0.19

1,063

-2.61

-12.3

8160625

49.99

0.19

274.25

-2.67

-17

45307700

57.94

0.29

2,682.6

-2.73

4.39

2254350

45.23

-0.4

7,642

-2.81

-28.11

1113000

47.53

0.17

1,618.1

-2.89

11.44

5380400

44.5

0.21

1,036.1

-2.9

-2.1

13798000

42.64

0.49

233.15

-3.11

0.58

73372500

52.22

0.7

465.6

-3.13

6.72

18747625

50.51

0.33

979.55

-3.21

17.89

12725350

52.51

0.25

418.9

-3.37

-16.06

18769800

59.49

-1.43

3,071.9

-3.52

-29.05

1501800

59.62

0.41

3,028.3

-3.56

-21.41

4241050

66.15

-0.41

3,412.7

-3.59

0.05

1454075

47.08

0.6

5,230

-3.62

-4.47

1192800

58.33

-0.56

1,484.7

-3.74

-12.64

3561075

48.43

-0.24

518.8

-4.44

6.36

20110825

45.83

0.67

334

-4.46

-10.73

39652500

57.75

0.59

201.65

-4.85

19.92

91422000

51.75

0.6

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Arbitrage Opportunities

Premium

Discount

Script
Spot
Future
Premium(%)

APOLLOHOSP

8,592.00

8,592.50

0.00%

TVSMOTOR

3,569.70

3,570.00

0.00%

RVNL

240.85

240.88

0.01%

BIOCON

416.15

416.20

0.01%

TCS

2,094.70

2,095.00

0.01%

Derivatives Trading Strategy

A derivatives trading strategy uses financial tools, including futures, options, and swaps, to hedge against potential risks or to speculate on the price action of an underlying asset—for instance, stocks, commodities, or currencies. Such strategies can be used either as hedging to mitigate exposure to market fluctuations or leverage to amplify potential gains, depending on the trader's perception of market outcomes and his appetite for risk.

Though derivatives could improve profit and manage risks effectively, they carry a huge potential for losses. This is where proper structuring of strategy and an adequate risk management plan becomes quite crucial for good trading.

Futures Trading Strategies

Those who trade future contracts will either buy (long trades) or sell (short trades). A few common future trading strategies are as follows:

  • Long Trades: The most common type of futures trading is a long trade. When you buy futures, you are essentially optimistic about the rise of the price of the underlying asset before the contract expires. The higher the price goes beyond the strike price or the agreed-upon rate between you and the seller, the more you can profit.
  • Short Trades: Short trades are selling futures. When one sells a futures contract, they expect the price of the underlying to decline before expiration. Short trades are riskier than long trades because losses can be massive if the price goes against you.
  • Bull Calendar Spread: In this futures trading strategy, the trader buys and sells futures contracts on one underlying asset but for different expiration dates. Generally speaking, a trader will go long on the near-term expiry and short on the long-term expiry. Investors, while pursuing this strategy, expect the spread to widen in favour of the long term, thereby increasing the profit margin.
  • Bear Calendar Spread: In this strategy of futures trading, a trader goes short on the short-term contract and long on the long-term contract. Investors preferring this strategy expect the spread to widen in favour of the short so as to make a higher profit.

Options Trading Strategies

Options have two types: call and put. A call option would give a trader the right to purchase an underlying asset at a predecided price in the future. The put option permits the trader to sell an underlying asset at a predecided price in the future. These are the most common trading strategies in options that traders use:

  • Buy Call: One of the most popular investments in options is the long call. This is common when the underlying asset and the agreed-upon rate are likely to go up before the contract expires on its date. The faster the price of the underlying asset moves above the strike price, the quicker you profit. But if the price goes up on the last day for which the contracts will expire, you are bound to lose money.
  • Buy Put: You buy a put, hoping that the underlying asset goes down in the future or before expiration. The money will be made if the underlying asset goes down to below the strike price. If the rate goes up, your premium value becomes zero.
  • Covered Call Strategy: This is a strategy where you purchase an underlying asset in the spot market and let go of a call of the same asset. It is preferred by investors who have a neutral to bullish stance. The reward can be limited, but losses may be unlimited. Also, volatility might create further issues for a trader depending on this strategy to generate profits.
  • Married Put Strategy: This strategy is applied when a shareholder purchases a put option on the stocks they already have or that they will eventually buy. Investors who adopt this strategy reduce the potential decline in prices of a stock they believe in generally.

FAQs on Roll Over

What does rollover mean in derivatives?

downArrow

Derivative rollover refers to the act of closing an existing contract position that is close to maturity and opening a new position in a longer-term contract. This helps maintain continuity in investment as one can continue holding positions without having to close or settle the original contract.

What is a rollover strategy?

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A rollover strategy entails the transferring of positions from an expiring contract to a new one with a later expiration date. It helps maintain market exposure in futures and options markets. This is highly practical for traders since it enables them to avoid delivering the underlying asset while continuing to benefit from any price movement.

What is the difference between rollover and swap?

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A rollover is an extension of the expiration date for a position, whereby a position is rolled over into a new contract. On the other hand, a swap refers to a financial agreement between parties to exchange cash flows or liabilities related to different currencies or interest rates. Rollovers extend open positions, while swaps manage risk or cash flows between parties.

What is the risk of rollover?

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The first rollover risk is the cost of maintaining the position, including possible negative spread shifts between expiring and new contracts. In addition, during the rollover period, market volatility may create price mismatches. Hence, the total yield of the strategy is not too appealing.

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