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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

69,589.6

0.05

-8.68

5900

29.35

0.29

23,635

-0.14

9.84

6833385

28.52

0.33

14,368.4

-0.19

9.38

699360

23.38

0.25

53,590

-0.28

-5.21

1158180

37.75

0.39

25,257.4

-0.42

-6.25

1500

4.31

0.38

STOCKS

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

154.75

9.01

-11.73

39603000

34.87

0.63

3,169.9

6.39

-4.11

10165500

47.59

0.56

7,529

6.31

-12.28

1471000

40.89

0.34

3,127

5.26

-7.05

1841250

30.07

-1.15

340.6

4.63

-9.74

10600000

30.93

0.58

1,854.4

3.29

-6.58

7520975

44.07

-0.91

136.54

3.07

-5.55

59482800

29.32

0.86

8,332

2.98

1.75

983125

37.15

0.58

4,402

2.89

-1.92

2752950

28.79

0.51

1,796.3

2.83

9.41

1577800

29.59

0.7

11,281

2.7

6.92

1611650

37.14

-0.44

354.05

2.63

-9.83

13162925

31.41

0.14

1,485.3

2.51

-15.64

4697100

40.41

-0.59

36,550

2.48

-14.99

193325

36.67

0.73

1,752

2.29

-11.51

1087775

26.31

0.36

96.9

2.22

-0.71

42596325

28.97

0.55

1,553

2.19

-13.14

11798050

57.15

0.63

548.15

2.1

-21.34

9979475

35.87

0

5,232

1.92

-12.13

400925

21.36

-0.18

1,079.4

1.9

-4.66

1388750

25.66

0.25

1,095

1.8

-13.3

5568675

36.95

0.31

522.95

1.75

7.6

21235425

33.35

0.51

4,176.7

1.7

-15.54

3392000

39.08

-1.03

140.28

1.64

-7.22

41325375

31.82

0.65

1,009.1

1.61

-11.87

6705075

42.62

-0.8

5,535

1.57

9.66

647375

34.38

0.25

388.7

1.56

-2.07

12909375

28.58

0.48

1,105.9

1.56

-10.35

15983100

41.67

0.46

10,592.5

1.53

-10.06

952200

31.11

-1.61

3,057

1.5

-1.48

2235450

31.28

0.42

269.95

1.42

-13.11

10009200

25.87

-0.24

419.95

1.42

-3.25

51040650

38.06

0.73

2,723.9

1.35

13.27

2574600

25.31

0.6

1,531.5

1.32

-16.99

1387600

37.08

-1.42

866.25

1.27

7.04

8401400

29.54

0.47

436

1.25

-9.22

31406250

35.76

0.17

1,653.2

1.24

-8.21

2061500

25.25

-0.25

323.05

1.22

20.75

24219000

27.68

0.8

19,326

1.1

-35.35

148750

50.36

-0.64

3,008.2

1.08

-18.07

859600

32.01

0.1

433.5

1.07

-0.11

48837600

46.25

0.5

613.4

1.04

6.45

30012400

43.31

0.3

1,473.8

1.03

-5.78

1764500

20.91

0.67

127.89

1.01

-21.46

22761675

41.63

-0.7

4,455.2

0.99

-3.24

1584500

37.4

-0.29

6,932

0.98

-0.36

1512600

38.78

0.62

406.1

0.98

-5.43

12798750

24.53

0.41

3,731

0.96

-12.15

1034425

28.71

-0.59

126.98

0.92

-8.23

18635550

23.72

0.93

276

0.91

9.36

14525000

21.63

0.54

198.4

0.89

-17.89

139935000

38.09

-8

1,493

0.89

-7.63

566000

27.97

0.31

24,705

0.85

-13.89

120725

26.18

-0.52

1,791

0.82

-8.48

9228775

33.03

0.38

4,373.5

0.8

2.02

3019650

38.74

0.53

510.1

0.77

2.14

7598750

24.95

0.49

1,802.5

0.75

11.18

2250300

33.05

0.24

11,508

0.74

-14.66

1300600

42.35

0.68

18,380

0.72

-3.07

289100

28.65

0.7

467

0.66

-13.43

4758550

31.79

0.19

1,115

0.63

5.79

2231500

29.64

0.65

295.85

0.62

4.86

25694750

32.41

0.38

97.7

0.6

-18.29

31892950

43.03

-1.08

1,247.8

0.6

7.84

90089300

42.68

0.48

4,211.1

0.59

-16.74

1274625

43.58

-2.73

160.55

0.58

-13.55

45608475

29.99

-0.02

2,456

0.56

-13.51

1684875

32.03

-0.12

586.1

0.54

-7.01

16726000

34.51

0.86

816.8

0.53

-11.9

3289000

23.5

-0.23

292.3

0.51

-6.51

19406900

28.54

0.76

1,872

0.51

3.88

3071600

42.3

0.77

38,490

0.5

-15.66

135120

35.55

-0.11

2,234.1

0.5

5.61

1985500

29.11

-0.56

236.18

0.46

-2.47

67943200

34.06

0.55

1,727.9

0.45

-3.28

2965175

31.21

0.44

3,384.1

0.45

5.83

3698275

29.04

0.8

208.36

0.44

0.09

103254250

44.74

-1.39

432.6

0.42

-10.8

24298300

36.02

0.09

362.65

0.42

-12.04

36222400

43.44

-0.15

511

0.41

4.09

5640650

25.1

0.45

155.23

0.38

-14.55

35704250

38.17

0.21

902.65

0.38

6.64

20053600

41.28

0.4

341.05

0.36

-17.16

12371400

50.74

0.55

807

0.36

-10.08

4851000

38.25

-0.01

1,903.1

0.32

-6.33

2531500

28.89

0.62

3,891.1

0.3

-0.28

5818050

30.05

0.6

52.85

0.28

-21.63

154260900

42.59

0.39

13,030

0.24

-4.17

1630250

44.59

0.52

122.55

0.23

-9.66

12275350

30.12

1.23

128.13

0.23

-4.28

96997500

35.9

0.7

154.7

0.23

-13.96

77790000

36.53

0

459

0.21

-19.66

25173450

33.78

-0.05

6,582.5

0.21

-15.48

1276625

41.18

-0.15

330

0.21

-5.87

28860750

35.85

0.39

1,888.5

0.21

-1.04

11761050

37.37

0.76

2,392

0.18

3.69

3703875

25.76

0.53

1,324.6

0.17

-17.27

10096875

37.68

-0.64

883.95

0.16

0.26

4125225

25.8

0.69

334.35

0.13

-1.35

21588175

27.55

0.41

300.25

0.13

-15.22

49899700

51.47

0.64

1,208.5

0.12

-9.42

3372000

26.33

0.47

3,480

0.07

-3.78

805525

28.75

0.04

9,695

0.02

-13.38

508075

34.26

-0.05

1,625.3

0.01

6.7

3037200

23.83

0.51

2,605.7

0.01

-6.26

4281500

29.43

-0.34

1,169.5

0

-18.27

18974300

36.64

-0.39

2,621.7

0

-1.59

1341800

26.19

0.19

5,335

0

-8.18

1193375

33.43

0.43

829

-0.01

-8.82

2973575

38.79

0.24

307.9

-0.04

0.74

64746825

32.48

0.6

1,303

-0.05

-12.36

1494875

36.2

-0.23

269.8

-0.05

-24.48

34648950

47.08

-3.81

1,402.6

-0.07

-1.34

6786475

37.36

-0.39

68.26

-0.08

-8.39

212814875

41.65

0.58

4,975.5

-0.09

-6.98

1652400

32.41

0.45

1,154.6

-0.09

1.5

4937250

30.66

0.92

745.5

-0.1

-22.56

4965050

43.86

-1.8

139.49

-0.1

-5.13

26764400

30.95

0.68

760.5

-0.11

-1.62

257617800

58.76

-1.11

1,250.1

-0.12

7.98

37865000

42.34

0.63

93.01

-0.16

-9.81

25551500

25.93

0.94

951.4

-0.17

-2.69

55262250

46.44

0.69

1,283.1

-0.17

-0.22

24036750

36.84

0.66

2,296

-0.21

-23.95

20539900

43.21

-0.3

408.4

-0.21

3.87

69247500

42.83

0.57

4,153

-0.25

-1.67

1551900

30.09

0.3

629.95

-0.27

-4.13

10935575

26.16

0.45

1,818

-0.28

1.36

3748850

32.61

-0.57

4,092.7

-0.31

3.61

3985100

37.31

0.57

6,864.5

-0.31

-3.64

807400

30.7

0.52

263.4

-0.32

1.39

49385700

34.01

0.6

2,265.4

-0.32

-14.99

3632475

38.14

-0.26

102.1

-0.33

-2.18

134368000

37.19

0.48

9,204.5

-0.34

-4.48

681500

29.3

0.49

973.6

-0.35

-8.12

4354725

39.97

0.45

1,018.9

-0.39

3.3

5040000

29.52

0.3

1,381.5

-0.4

7.02

1476900

21.28

0.84

585.7

-0.43

-5.44

4473700

25.65

0.13

2,314.5

-0.44

-14.93

1406075

40.62

0.02

1,857.7

-0.45

-0.99

4097625

37.44

0.41

504.35

-0.45

-1.22

6409200

27.6

0.44

3,104.9

-0.45

4.99

10069000

43.03

0.49

657.95

-0.49

0.38

12399000

37.06

0.24

2,695.8

-0.52

-3.11

6424728

29.26

0.58

78.97

-0.52

-10.52

65262900

39.12

-1.12

191.65

-0.56

0.47

39214800

32.91

0.66

631.85

-0.56

-0.32

7956560

22.1

0.56

13.5

-0.58

-2.13

2376329325

33.81

0.74

5,385

-0.59

-10.48

1477000

33.44

0.6

94.72

-0.59

-11.41

21635000

24.93

0.91

219.49

-0.6

-2.84

34719000

31.15

0.67

381.3

-0.65

2.38

97758000

44.22

0.47

88.16

-0.65

1.68

107730000

26.85

0.45

242.21

-0.65

7.04

78407525

32.53

0.62

431.45

-0.66

-1.71

12537500

27.24

0.42

832.55

-0.66

8.05

7101600

27.3

0.52

296.3

-0.67

-8.22

46552500

42.87

0.38

4,078.4

-0.68

-0.23

1593750

33.62

-0.74

1,352

-0.69

-2.22

6354600

26.67

0.59

463.3

-0.71

-8.79

15676175

45.73

0.36

1,056.4

-0.78

-6.15

3610750

25.87

1.29

389.3

-0.8

-0.85

67374000

41.94

0.77

447.75

-0.8

-6.11

8378750

29.5

0.91

1,035.3

-0.86

0.01

5615100

34.47

0.76

1,888.9

-0.87

1.78

27867300

41.25

0.58

1,666

-0.88

-11.71

1336400

35.06

0.2

4,191.2

-0.89

-8.67

3880400

42.3

0.44

917.2

-0.89

7.61

20445150

36.84

0.55

1,508.9

-0.89

2.97

7976875

32

0.6

1,354

-0.9

-2.55

7995000

28.86

0.74

3,284.2

-0.91

-4.58

1873025

33.22

-0.28

453.45

-0.93

-0.42

9277325

24.98

0.63

409.6

-0.94

-5.39

24706550

35.17

0.06

1,349.5

-0.94

0.42

67663500

49.57

0.7

842.7

-0.98

-11.04

1292700

27.91

0.49

1,175.6

-0.99

-14.98

48458800

43.72

-0.39

1,338.1

-1

-0.66

6724350

26.91

0.51

1,753

-1.01

14.88

5427600

37.14

0.57

5,030.6

-1.09

-11.27

1484850

33.41

-1.1

1,405.6

-1.14

0.06

6986000

36.64

0.32

1,273.7

-1.19

-2.36

4058000

27.27

0.71

962

-1.23

1.15

9831000

29.76

0.42

1,187

-1.26

-0.76

5804150

32.89

0.52

616.1

-1.26

-6.96

14913600

42.12

-0.97

2,186.5

-1.31

-14.16

7346400

36.28

-0.52

329

-1.36

-8.88

15512350

30.32

-0.19

1,417.9

-1.39

-7.76

9380400

37.69

-0.18

284.95

-1.41

-5.43

32787500

33.43

0.29

538.6

-1.43

-2.59

10364000

30.72

0.69

1,381.9

-1.53

3.51

6121275

28.08

0.34

1,274.1

-1.58

-13.34

4212750

32.7

-1.19

348.8

-1.6

1.78

20546800

29.52

0.64

2,156.2

-1.7

-12.03

1578850

27.4

-0.52

10,283

-1.72

5.66

79200

21.45

-0.59

906.5

-1.77

-14.72

37932000

44.32

0.05

195.46

-1.77

-2.03

83307500

37.3

1.19

767.6

-1.82

-8.29

2542425

28.11

-0.54

21.62

-1.86

-7.18

567668300

39.43

0.6

925.15

-1.88

-0.77

5399550

27.55

1.13

1,199.9

-2.2

-2.45

3892500

25.32

0.28

1,196.9

-2.42

-3.3

7518775

44.38

-0.21

2,529.2

-2.44

-18.09

2162000

39.73

-0.16

1,079

-2.53

-9.57

927500

21.85

-1.29

250.85

-2.54

5.22

18438675

29.9

0.19

266.9

-2.6

-7.06

20045250

33.03

-0.84

3,323

-3.37

-5.19

4340800

33.68

0.39

35,190

-4.75

-0.42

123550

29.81

0.59

2,735

-5.16

-0.51

1824200

37.78

-1.05

435

-8.25

-2.41

21290000

40.95

-1.96

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Arbitrage Opportunities

Premium

Discount

Script
Spot
Future
Premium(%)

MCX

3,322.80

3,323.00

0.00%

PATANJALI

463.25

463.30

0.01%

WAAREEENER

3,056.60

3,057.00

0.01%

IREDA

127.87

127.89

0.01%

NAM-INDIA

1,078.80

1,079.00

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?

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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