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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

27,259.1

1.54

-21.07

67340

63.79

0

25,555

1.19

-6.91

16581305

76.66

0.26

57,225

1.06

-6.21

2329495

74.56

0.04

68,299.8

0.88

-56.57

17675

81.07

0.7

13,306.55

0.51

16.81

2383780

73.25

0.6

STOCKS

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

3,001.1

5.14

3.56

1851600

70.7

0.74

2,202.8

5.02

-5.79

3146325

79.37

0.13

271.61

4.74

24.72

32817600

85.21

0.8

133.28

3.75

23.68

122585400

79.01

0.42

30,115

3.5

4.26

267150

75.33

0.54

699.35

3.46

39.1

39085205

84.87

0.35

422.9

3.44

11.45

47245270

85.45

0.35

330.25

3.38

3.02

40236670

71.15

0.15

147.05

3.34

19.29

92278875

73.86

0.55

729.7

3.31

29.02

20000400

88.69

0.18

313

3.28

35.06

97177200

75.43

0.46

952

3.27

5.9

14996875

72.84

0.76

693.15

3.07

19.11

52298400

79.57

0.05

455.05

3.01

4.89

81819050

81.93

0.64

193.28

2.97

0.3

60791250

74.54

0.62

693.4

2.9

-1.01

6147200

87.16

0.54

206.61

2.73

26.18

64123402

80.48

-0.73

148.41

2.71

87.4

74025830

78.11

0.23

160.77

2.68

29.42

184607500

79.67

0.75

637.85

2.56

-9.67

6379000

69.53

0.06

2,059.3

2.55

26.03

16887500

82.49

0.37

950.5

2.53

36.28

100039500

80.07

0.63

650.7

2.44

36.78

15636205

74.75

0.04

2,896

2.41

19.57

11048250

82.82

0.13

1,113

2.4

12.57

9833850

79.86

0.45

1,428.5

2.39

10.18

24632555

78.6

0.51

2,589.7

2.27

9.75

18043800

82.96

0.52

2,009.5

2.25

27.11

49550100

76.54

-0.04

915.5

2.25

5.96

25924545

81.88

0.9

553.3

2.24

0.09

15470050

86.66

0.74

8,857.5

2.16

-19.4

1898125

82.36

0.43

70.5

2.15

19.2

234913500

73.82

0.79

264.65

2.07

17.14

163711750

78.6

0.48

1,263

2.06

28.35

10986155

83.79

0.47

1,152.6

2.06

2.73

8583000

85.92

0.78

822

2.06

-23.29

17200000

86.9

-0.86

623.3

2.02

7.18

25267000

76.47

0.62

277.88

2.01

-2.92

60155500

86.82

0.12

2,804.7

1.98

7.81

4838075

73.82

0.4

449.05

1.95

-18.23

12925100

76.85

-0.45

5,826

1.94

49.12

3151000

70.5

0.49

17,306

1.9

-28.69

650175

85.63

0.59

518.5

1.9

4.69

36207000

84.67

0.77

798.5

1.86

43.73

33264000

72.57

0.59

2,015.7

1.8

21.79

114101900

84.79

-0.25

336.5

1.76

15.19

128803500

74.4

0.71

866.95

1.76

7.65

18879075

84.12

0.56

249.4

1.74

-6.95

41547500

87.09

0.52

1,492.3

1.73

25.86

98850000

78.82

0.57

208.11

1.66

7.95

46734370

68.13

-2.14

3,136

1.65

6.93

5062400

71.16

0.56

420

1.63

8.47

53211600

76.74

0.6

2,910.5

1.63

-0.21

2146750

63.74

0.38

682.55

1.63

1.99

19861100

79.48

0.59

11,935

1.62

53.93

2953300

65.42

0.27

184.8

1.61

9.56

92221200

76.82

0.38

792.3

1.55

11

6906800

83.94

0.59

231.06

1.54

-9.32

13932000

83.97

0.65

645.4

1.51

-24.64

4945500

81.71

0.77

1,143.2

1.45

46.96

16035250

79.11

0.71

32,190

1.43

17.33

289750

87.84

-0.82

84.84

1.42

10.79

180547875

78.14

0.58

1,231.9

1.4

22

65859995

84.12

0.61

1,882.9

1.39

3.75

4472100

74.65

0.66

186.78

1.36

20.65

103131000

71.48

0.54

3,357.9

1.33

8.79

3748200

73.45

-0.19

448.45

1.29

-8.56

42546695

81.44

0.68

265.3

1.29

2.91

57138375

81.28

0.37

404.35

1.29

21.48

76191445

76.52

0.25

3,693.6

1.28

11.31

12282030

93.32

0.17

2,438.8

1.27

17.55

10113750

81.47

0.19

7.24

1.25

8.33

562116400

42.62

0.82

985.6

1.25

-10.83

8709300

91.58

-0.85

1,526.7

1.25

-33.52

5569625

91.54

-0.56

300.6

1.24

26.79

38964600

82.45

-0.34

293.7

1.24

12.27

83560100

77.23

0.3

48,545

1.24

29.94

152685

85.12

-1.08

939.15

1.21

-56.56

4302150

87.14

0.4

1,665.8

1.2

27.89

982800

67.46

-0.61

993.4

1.14

13.9

17619600

74.56

0.75

566

1.13

4.92

30738750

81.52

0.85

245.05

1.12

7.18

110324250

67.2

0.26

2,429.3

1.05

-39.8

2286300

89.64

0.56

977

1.03

27.51

12996000

76.06

-0.35

3,662.1

0.99

55.09

15562755

79.97

0.62

1,624

0.98

10.12

11855625

84.25

0.46

173.79

0.95

3.04

18462120

73.84

0.43

1,856

0.95

44.5

9025500

72.53

0.85

1,082.5

0.95

-28.7

2292400

86.94

0.6

420.2

0.93

12.76

110576000

81.01

0.7

681.4

0.88

7.22

77632000

83.13

0.77

5,686.5

0.88

11.2

8592450

82.64

0.79

7,111.5

0.87

54.36

2701250

79.75

0.56

1,035.55

0.87

25.62

37099350

92.95

0.23

410

0.86

7.82

102366300

86.69

0.31

475.05

0.85

-2.89

13026080

80.18

0.78

238

0.85

13.12

80264000

85.87

0.59

268.8

0.84

-28.98

30110120

91.47

0.83

8,453

0.82

-0.36

2520300

85.46

0.46

4,302.8

0.82

21.01

4155300

90.56

0.67

1,647.8

0.8

-2.6

7102500

84.19

0.69

116.94

0.79

-2.16

58442800

81.7

0.73

14,315

0.77

-6.73

1736450

76.09

0.69

2,583.6

0.71

-6.2

3501850

84.19

-0.44

50.18

0.68

4.07

105857250

77.26

0.83

1,731

0.67

-5.19

9474375

82.43

0.86

3,171.3

0.65

-14.6

2243750

86.36

0.36

1,435.3

0.63

-2.3

99550500

86.28

0.53

1,637.1

0.63

-15.33

6872800

78.62

0.47

357.1

0.61

1.91

35670600

94.89

-0.07

704.5

0.6

8.33

13061600

74.52

0.66

1,520.7

0.58

13.19

9040125

86.64

0.08

2,805

0.58

-1.42

9585000

72.67

0.64

393.7

0.58

10.27

76381650

78.91

0.36

6,007.5

0.57

3.96

2112000

85.3

0.62

4,818.8

0.55

5.42

9608100

75.63

0.62

388.95

0.54

-3.58

22446000

82.98

0.29

6,613

0.53

14.28

2941100

88.74

0.09

5,609

0.53

27.94

3164000

61.92

0.11

405.8

0.53

10.43

69933500

83.61

0.62

85.5

0.52

28.68

79212800

69.49

0.23

1,829.6

0.52

-9.63

2851550

78.58

0.65

1,303.1

0.5

25.24

3048100

84.9

-1.18

958.7

0.5

2.02

6456100

56.73

-0.63

274.45

0.48

1.96

26772000

67.99

0.61

6,476.5

0.47

-1.28

2152875

80.85

0.6

771.9

0.44

11.68

14497880

75.87

0.63

1,284.2

0.43

-20.45

10163000

88.67

0.29

1,627.3

0.42

52.27

3472000

75.95

0.65

154.16

0.42

19.41

107784900

80.18

0.65

481.7

0.4

2.93

23357500

88.54

-0.51

495.4

0.37

0.15

13848155

75.18

0.86

2,924.9

0.37

18.08

8047550

63.56

-0.01

1,579.9

0.36

-24.23

8067000

91.19

0.43

416.45

0.36

12.12

60086500

86.62

0.55

1,890

0.34

-0.83

12367130

86.35

0.44

2,203.9

0.34

44.82

27070400

75.13

0.48

189.9

0.33

-1.01

45056250

78.89

0.68

3,017.8

0.32

15.23

3020500

82.15

0.18

239.84

0.29

-12.6

94182080

86.41

0.44

1,721.8

0.23

30.45

13639500

72.5

-0.02

1,446.3

0.2

8.78

2544000

76.01

0.42

1,121.4

0.19

1.28

17388800

85.82

0.85

110.87

0.18

12.97

198612050

79.8

0.64

106.27

0.17

-1.06

229464000

83.26

0.6

1,313.9

0.17

-5.04

11102255

85.41

0.79

831

0.16

3.61

43040900

80.87

0.72

1,751.4

0.16

-29.74

9139950

87.44

0.07

442.45

0.15

-2.33

16678200

76.93

-0.07

140.15

0.13

-17.23

49087500

79.4

0.59

87.45

0.11

4.24

72627000

80.82

0.8

1,512.9

0.11

39.02

12679875

83.17

-0.39

2,016.8

0.1

38.92

5196100

75.47

0.39

1,671.4

0.07

21.37

17586100

78.76

0.17

1,613.9

0.06

-6.51

55778000

86.94

0.49

240.29

0.06

3.88

34226850

73.02

0.81

1,463.9

0.06

4.93

1987500

80.6

0.48

4,231

0

5.35

1933050

69.55

-0.01

2,283

0

6.62

14013000

83.5

0.77

6,267

0

-47.45

1943800

95.53

-0.74

2,276.9

-0.02

15.99

18609000

81.55

0.79

1,673

-0.02

13.22

3361750

82.2

0.76

210.14

-0.03

16.85

80470000

71.88

-0.33

3,438

-0.07

44.62

21511700

76.47

0.33

399.4

-0.11

-41.37

10150250

85.47

0.45

1,980

-0.13

-8.85

4988550

89.47

-2.12

938

-0.17

14.26

10316800

74.64

0.52

5,083.2

-0.23

-3.44

2388750

84.64

0.25

4,153.7

-0.24

7.67

1564150

89.02

0.5

6,109.5

-0.24

-50.14

5618200

93.01

0.13

753.35

-0.25

-6.39

14748000

85.13

0.82

479.65

-0.25

12.92

20609400

77.23

0.32

1,450.4

-0.26

10.43

13419600

76.72

0.52

3,201.5

-0.26

26.09

20201000

83.94

0.04

71.79

-0.26

6.99

390329150

83.77

0.9

201.95

-0.26

-25.51

8005000

69.24

0.08

1,930.5

-0.28

44.47

10075050

67.18

0.04

12,718

-0.29

1.27

2808750

78.18

0.66

780.45

-0.3

15.13

22132000

80.29

0.55

2,297.2

-0.31

-12.5

833625

82.4

0.93

4,844.5

-0.34

-11.56

1271375

78.25

0.81

459.2

-0.35

15.52

44779175

83.45

0.59

674.95

-0.38

29.27

11120550

77.28

0.6

1,792.2

-0.4

25.37

3359300

85.89

0.73

74.54

-0.4

0.05

47390200

76.3

0.81

3,212.9

-0.4

8.46

2969750

87.2

0.55

797.3

-0.46

6.85

98764500

77.65

0.6

1,181.1

-0.48

10.19

8590000

86.21

0.69

170.96

-0.48

-0.74

32247150

68.07

0.8

4,279.6

-0.52

-27.5

5401350

90.75

-1.22

350.2

-0.53

-13.95

35825000

81.68

0.57

558.25

-0.56

-15.25

10955400

76.59

0.73

441.5

-0.57

-3.64

10536500

72.24

-0.22

207.8

-0.59

9.64

14792250

76.04

0.67

709

-0.59

28.11

21073750

79.5

0.78

1,832

-0.65

-8.31

6049750

87.15

0.55

2,388.8

-0.67

10.6

5867125

77.11

0.74

267.64

-0.68

-9.36

66075000

85.33

0.62

479.15

-0.81

-28.16

14036550

85.54

0.65

3,784.9

-0.82

-2.96

951300

85.07

0.58

123.95

-0.87

-2.29

52325000

81.21

0.72

20.07

-0.93

4.62

938846800

75.64

0.94

5,795

-0.95

-9.52

667800

75.58

0.34

173.75

-0.99

-59.06

39222445

90.24

0.56

646.05

-1.01

5.48

8262000

83.47

0.58

845.55

-1.03

-0.01

40747570

83.2

0.58

6,054

-1.05

23.55

2558200

85.77

0.47

1,687.3

-1.12

-3.74

13570800

81.55

0.73

99.95

-1.13

-48.38

28252870

89.88

0.57

4,370.8

-1.21

-53.38

1393875

95.06

0.8

1,440.1

-1.22

4.23

5431950

78.43

0.61

5,367.5

-1.27

4.05

2110200

90.14

0.7

9,078.5

-1.34

-4.18

930900

84.25

0.72

1,322.6

-1.38

-16.07

9333750

76.31

0.24

381.1

-1.61

-5.39

12234200

84.8

0.7

1,274.1

-1.64

5.88

5288400

88.45

0.69

2,375.1

-2.09

-49.29

4988475

94.06

0.4

3,124

-2.29

-8.03

3298050

74.39

0.6

1,693.5

-2.36

12.63

3677400

82.14

0.85

635.5

-2.37

-33.61

35725925

93.75

-0.1

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Arbitrage Opportunities

Premium

Discount

Script
Spot
Future
Premium(%)

HAL

4,818.40

4,818.80

0.00%

MIDCPNIFTY

13,305.05

13,306.55

0.01%

RECLTD

404.30

404.35

0.01%

EXIDEIND

388.90

388.95

0.01%

COLPAL

2,374.70

2,375.10

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?

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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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