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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

58,950

-0.13

-1.44

343385

16.82

0.62

27,574.8

-0.39

-2.39

2470

6.23

0.64

25,933.9

-0.48

-2.49

2608135

12.89

0.71

13,925.8

-0.84

-3.66

161280

4.52

0.49

69,640

-0.92

0

3075

13.63

0.76

STOCKS

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

103.96

6.07

-4.93

32580225

13.95

0.82

243.5

1.84

-1.1

4492725

12.76

0.6

244.5

1.77

-11.08

5350000

8.82

0.47

2,148.5

1.67

-3.62

7461300

17.7

0.67

1,386.1

1.27

-5.56

3581250

21.47

-2.46

1,266.8

1.24

-4.15

6953750

9.07

0.53

522.9

1.19

3.58

5690000

14.84

0.59

289.75

1.18

-1.49

5649000

8.87

0.74

1,493.5

1.13

-5.4

546500

6.86

0.52

1,402

0.87

0.19

1484500

14.79

0.22

5,095

0.83

-2.05

646375

18.55

-0.09

2,895.2

0.59

-3.43

1735000

12.43

0.48

3,892

0.57

-4.45

782425

7.9

0.53

920.35

0.48

-2.84

1379000

8.34

0.55

2,831.8

0.41

-1.55

1671000

13.13

0.73

564.5

0.33

-3.7

1486650

9.07

0.74

5,851.5

0.3

-0.7

110375

3.14

0.8

922.1

0.27

-1.87

653900

4.12

0.53

822.7

0.24

-0.84

6494400

11.44

0.76

488.55

0.22

-0.34

931175

6.06

0.8

422.55

0.21

1.11

5970000

11.36

0.61

274.25

0.2

-7.42

10024400

11.83

0.74

3,251.8

0.19

0.18

237800

8.1

0.4

1,077.4

0.17

-2.11

130500

4.82

0.7

15,910

0.14

-4.01

239100

9.22

0.73

583.35

0.13

4.86

1337650

11.95

0.59

1,314

0.12

-4.02

200500

6.11

0.71

589

0.09

0.16

1919700

5.52

0.28

1,026.4

0.04

0.24

459675

2.3

0.76

15,696

0.01

-1.26

260000

11.75

0.82

269.65

0

-3.22

4465625

6.98

-0.78

1,702.6

-0.01

-1.49

2813125

16.44

-1.67

149.15

-0.02

-6.48

22916250

13.57

0.69

1,519.7

-0.02

-3.28

13428500

12.37

0.69

288.3

-0.03

-4.8

9175725

9.08

0.81

5,812.5

-0.04

-0.6

417150

7.03

0.57

916.85

-0.05

-1.05

1378300

12.47

0.65

4,809.2

-0.11

-2.02

1254600

12.66

0.7

39,320

-0.15

-1.71

41955

15.38

-1.19

6,799

-0.15

-2.37

204450

6.28

0.6

147.57

-0.16

-2.26

31925000

20.11

-0.88

559.95

-0.16

-1.55

3367350

6.77

0.54

972.05

-0.17

-4.75

8986500

12.05

0.71

528

-0.19

-1.67

1328000

3.26

0.64

1,997.5

-0.2

-0.93

532125

6.75

0.55

1,785.3

-0.2

-1.9

184275

10.01

0.19

1,086.7

-0.22

1.61

997550

22.66

-1.03

2,802.2

-0.23

-1.62

418325

9.36

0.67

5,710

-0.24

-4.46

71125

4.18

0.7

1,238.7

-0.26

-0.99

1561250

9.84

0.33

7,380

-0.3

-1.1

491600

29.21

-3.04

9,695

-0.33

-2.48

183875

6.76

0.6

382.35

-0.35

-6.49

5610600

15.09

0.7

1,236.9

-0.36

-3.77

4164600

16.9

0.67

21,453

-0.37

-3.1

16800

10.07

0.47

2,046

-0.37

-2.64

494275

4.74

0.69

1,374.5

-0.38

-2.54

12902400

11.45

0.65

147.24

-0.39

-4.17

7472400

13.69

0.51

122.89

-0.39

-3.52

28536000

12.48

0.61

370.9

-0.4

5.43

19010400

21.66

0.43

3,465.1

-0.41

-2.46

230825

2.75

0.85

1,757

-0.43

-3.41

1208200

7.6

0.65

184.58

-0.44

-3.11

7471800

9.01

0.49

172.96

-0.44

-5.04

46959000

17.34

0.54

2,094.5

-0.44

-1.99

3249600

8.73

0.71

887.35

-0.45

2.46

1240000

9.78

0.38

930.8

-0.47

1.2

1687500

14.25

0.48

1,264.5

-0.51

-2.29

1058000

6.4

0.78

7,355.5

-0.51

4.04

23725

6.29

0.36

991.95

-0.51

-2.39

20364850

9.46

0.64

3,607.8

-0.53

0.3

154175

7.28

0.67

328.5

-0.54

-2.47

9552000

9.97

0.76

273.2

-0.54

-3.93

5760000

10.24

0.65

7,661

-0.55

-1.59

66875

4.53

0.65

405.95

-0.56

-1.7

17697600

10.16

0.73

600.7

-0.57

-1.5

2015000

8.96

0.62

5,272.5

-0.57

-0.43

718000

22.31

-0.21

8,917.5

-0.57

1.4

362475

9.96

0.37

2,173

-0.58

0.86

770175

10.7

0.43

1,472.4

-0.58

-2.07

577500

6.65

0.52

483.85

-0.59

-1.28

1656450

4.2

0.56

172.13

-0.61

0.17

6249750

6.44

0.37

3,951.2

-0.65

-0.94

249300

13.73

0.65

275.15

-0.66

-0.71

1675200

3.8

0.67

1,128

-0.66

-2.11

391425

8.48

0.64

372.25

-0.68

-2.11

2107325

7.15

0.56

1,295.5

-0.68

-2

139700

3.04

0.5

6,491

-0.68

0.13

182300

5.35

0.57

333.6

-0.69

-0.89

2405600

3.04

0.68

431.1

-0.71

-4.21

1030400

8.46

0.67

1,766

-0.71

-0.44

130900

1.82

0.67

2,669.9

-0.72

52.6

648175

9.06

0.58

375

-0.72

-8.82

23600200

31.22

-0.18

2,409.4

-0.73

-0.81

2158200

11.02

0.58

3,084

-0.74

-3.81

4263875

15.51

0.71

359.4

-0.75

-3.03

14154875

13.35

0.68

26,555

-0.76

-2.99

18100

5.91

0.48

1,424.9

-0.77

-2.41

700400

4.7

0.89

2,820

-0.77

-0.59

343600

8.52

0.7

492.2

-0.77

-1.72

1412350

4.29

0.51

315.45

-0.78

-1.57

5080000

6.61

0.52

1,116.3

-0.79

0.01

1569225

8.36

0.77

520.35

-0.79

-2.41

1043750

4.26

0.64

246.7

-0.8

-3.47

7227000

7.62

0.66

154

-0.8

-5.64

30517200

23.09

0.46

626.6

-0.81

-1.71

287675

2.21

0.54

422.3

-0.82

-2.5

19260300

16.47

0.72

11,705

-0.83

-1.8

213850

8.49

0.74

3,997.2

-0.85

-5.22

1918175

14.64

0.75

6,074.5

-0.85

-2.13

105600

4.59

0.53

1,731.1

-0.85

-0.41

78400

2.17

0.4

1,319.3

-0.86

-2.2

455625

5.04

0.61

109.18

-0.87

-3.11

13419300

7.62

0.56

1,591.7

-0.87

-2.26

1273300

7.97

0.74

567.35

-0.88

-2.1

2781000

8.7

0.73

280.95

-0.89

-1.31

4215000

9.08

0.53

297.45

-0.91

-0.44

4330610

7.96

0.65

153.14

-0.91

-0.65

11221800

12.45

0.72

4,375

-0.93

-2.79

939800

10.8

0.73

1,165.2

-0.93

-1.44

2288925

5.05

0.58

1,497.8

-0.95

-2.74

2372150

9.4

0.58

1,801.4

-0.96

0.15

520800

5.79

1.12

182.11

-0.97

-13.07

32138200

29.13

0.74

3,790.7

-0.98

-0.48

120000

5.37

0.78

4,007.2

-1

-0.27

831000

12.59

-0.27

3,702.3

-1

-3.01

1537200

8.21

0.55

847.9

-1.02

-1.25

4601800

9.76

0.66

457.35

-1.02

-0.53

3836250

9.17

0.75

136.63

-1.02

-0.59

8077500

10.37

0.74

80.66

-1.04

-1.15

7001600

10.55

0.71

2,022.3

-1.05

-3.29

330200

5.46

0.59

2,445.3

-1.08

-0.25

1624413

12.8

0.6

754.05

-1.11

-2.82

602400

1.94

0.78

1,490.2

-1.11

-2.76

19036800

25.69

0.18

677

-1.13

0.71

2168800

18.22

0.45

435.8

-1.14

-3.04

1319700

6.54

0.66

4,117.4

-1.15

1.19

74375

6.84

-0.08

37,035

-1.16

-0.28

10250

4.32

0.67

22.95

-1.16

-2.85

206317400

18.62

0.78

384.4

-1.16

-2.7

4785750

8.01

0.62

1,683

-1.18

1.95

150000

2.19

0.55

13,795

-1.18

0.2

87525

9.5

0.64

872.35

-1.21

2.78

747475

11.1

0.34

2,055

-1.23

-1.28

1001250

5.19

0.63

75.87

-1.24

-0.6

43827750

12.89

0.69

1,078.5

-1.26

-1.17

1881000

7.71

0.8

5,386.5

-1.26

1.08

155700

6.41

0.73

182.5

-1.29

-1.38

4095900

16.6

0.48

761.55

-1.34

-0.18

1622500

5.52

0.71

713.2

-1.34

0.61

3123000

10.12

0.77

2,756.5

-1.35

-1.91

917000

5.62

0.62

80

-1.36

-1.46

59573325

15.96

0.74

798.45

-1.37

-1.56

5281500

6.47

0.58

5,772.5

-1.37

-3.68

75900

3.41

0.33

1,066

-1.38

-12.95

2333750

17.07

0.87

1,515

-1.39

-3.39

1161750

7.49

0.73

1,141.3

-1.42

-0.8

395500

4.03

0.41

387.2

-1.43

-2.92

6219050

10.46

0.61

2,218.6

-1.47

-0.37

393975

13.78

0.89

3,702.3

-1.48

-9.98

444125

14.18

0.58

1,014.3

-1.48

-3.09

8829000

9.5

0.71

1,990.5

-1.49

-0.92

285025

10.9

0.78

209.12

-1.5

-3.2

0

0

N/A

698.55

-1.5

1.21

2953125

15.69

0.77

7,379

-1.51

-2.08

277000

9.12

0.65

241.1

-1.52

-1.46

29946000

18.72

-0.08

257.47

-1.52

-1.52

5415000

7.33

0.48

405.05

-1.54

-1.29

10062300

10.72

0.65

644.3

-1.55

-0.03

668000

6.86

0.5

761.15

-1.57

-7.29

3779095

11.04

0.76

1,778

-1.58

-1.59

708375

5.38

0.33

1,447.5

-1.58

1.34

1242275

13.21

0.65

120.91

-1.63

1.12

7501250

15.85

0.68

1,845.3

-1.63

-1.99

2266125

14.52

0.68

8,168

-1.64

1.11

119475

8.19

0.53

56.9

-1.65

-1.02

31276575

11.11

0.52

1,199

-1.7

-0.3

457675

13.58

0.25

304.55

-1.71

-1.53

24128750

7.96

0.8

115.02

-1.8

-6.9

12538500

15.01

0.67

1,607.6

-1.8

1.91

1509075

14.93

0.52

1,005.9

-1.8

-0.05

2521950

14.94

0.64

10.77

-1.82

-4.32

1300130250

19.89

0.64

474.95

-1.91

-5.63

6616225

16.52

0.83

2,800

-1.92

0

568250

15.2

-0.43

1,719.5

-2.02

-2.49

147600

3.87

0.97

148.18

-2.05

7.35

9887700

21.25

0.28

191.9

-2.05

2.53

3593625

15.48

0.16

2,147.4

-2.06

-1.63

457875

5.67

0.86

1,425

-2.06

-0.75

1592400

7.6

0.56

511

-2.06

-8.43

16932600

15.28

0.72

1,558.5

-2.07

0.23

666225

12.82

0.73

1,155

-2.09

-4.46

1040050

7.49

0.65

924.9

-2.09

-2.46

1524425

11.7

0.24

1,714.2

-2.11

-1.41

392350

8.35

0.28

3,468.9

-2.16

-0.92

251125

9.12

0.31

3,028.5

-2.17

-0.22

60800

3.03

0.81

138.53

-2.18

-1.82

13724000

7.48

0.7

305.75

-2.25

-3.2

30347900

19.95

0.73

320

-2.26

2.21

12178025

26

-1.46

5,751

-2.29

-0.39

634200

8.15

0.56

74.37

-2.46

-0.43

25206600

20.22

0.65

733.1

-2.55

-0.28

1006400

6.34

0.75

1,189

-2.68

-2.96

382500

3.57

0.68

867.45

-2.73

0.7

3624000

16.2

-0.97

749.35

-2.77

-1.91

3867600

9.76

0.68

4,264.8

-2.79

0.69

217400

6.12

0.47

1,293.1

-2.8

0.41

1693600

8.16

0.53

140.6

-4.09

0.5

17367666

20.25

0.86

5,912.5

-5.66

21.92

588200

24.58

0.21

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Script
Spot
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Premium(%)

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1,128.00

0.00%

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867.45

0.01%

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328.50

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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?

downArrow

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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