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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

24,178.2

0.33

0.21

2434900

13.6

0.36

57,890

0.17

0.01

462000

18.56

0.5

26,696.5

0.12

-0.6

60

0.2

-4.48

71,824.8

-0.13

0

1175

6.95

0.39

14,755

-0.26

-0.06

90000

4.45

0.26

STOCKS

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

245.57

4.2

-0.76

25302450

13.96

0.52

1,206.1

2.76

0.57

7745200

18.09

-1.32

1,111.1

2.72

0.34

13635200

10.74

-0.56

1,544

2.25

1.78

3048600

11.7

-0.25

1,598.7

2

0.84

615300

6.07

-0.32

334.8

1.9

0.53

11297500

11.68

-0.23

2,233.2

1.57

0.75

6845175

14.52

-0.48

3,171.4

1.51

0.29

2066400

11.22

0.24

427.8

1.38

1.68

0

0

N/A

5,118.2

1.27

0.45

567500

10.58

-0.84

1,717.1

1.2

0.3

313875

1.61

-0.13

1,095.5

1.2

-2.74

317000

5.7

0.57

3,616.2

1.08

0.11

640500

4.68

0.46

7,503

1.06

0.76

494700

11.32

-0.49

2,385.9

1.05

0.33

89925

1.79

0.51

1,312.6

1.03

0.38

21600500

17

0.51

10,480

1

0.11

70575

2.48

0.39

438.85

0.96

0.24

4020800

15.78

-0.94

2,122.7

0.75

0.25

3652200

16.32

0.45

556.5

0.75

-0.16

7099775

32.42

-3

3,103

0.73

0.08

597250

4.68

0

1,547.2

0.72

0.55

1215050

6.18

-0.96

4,108.2

0.7

0.31

366750

9.24

-0.71

963.7

0.65

0.1

194525

3.54

0.6

1,161

0.62

0.06

224375

3.61

-1.31

815.8

0.62

0.28

37835850

12.05

0.5

2,363.5

0.62

0

915750

15.5

-1.07

380

0.6

0.07

59862000

27.45

0.09

550.25

0.57

0.7

5624100

14.31

0.13

1,850

0.57

0.12

1795200

14.31

0.17

1,805

0.55

0.03

495000

3.33

0.63

2,124.9

0.53

0.58

136500

1.61

0.32

1,232.2

0.53

0

2286900

5.36

0.63

1,430.4

0.52

0.11

22194900

17.56

-0.14

437

0.49

0.6

5546625

5.77

0.44

13,850

0.46

0.59

276500

10.88

-0.5

41,385

0.4

-0.1

11700

5.03

0.06

645

0.38

0.01

14769650

25.87

0.37

4,453

0.38

-0.05

512250

9.23

0.4

1,314.9

0.35

0.32

8161875

11.32

0.38

2,095.3

0.35

0.15

420875

5.12

0.49

4,842.5

0.35

0.19

189450

3.36

0.52

365.7

0.32

0.48

2051050

4.15

0.09

5,284.5

0.31

0.34

592050

8.33

0.5

1,854

0.3

0.33

0

0

N/A

125.44

0.3

-0.22

4563150

5.49

0.4

1,037

0.29

0.14

22050000

25.25

0.52

2,611.9

0.29

0.22

767400

10.13

0.06

647.85

0.28

0.75

3029600

10.12

-1.02

214.99

0.27

0.43

9972000

9.69

0.46

1,558.5

0.27

0

115000

1.58

0.52

427.35

0.26

0.09

1398600

7.32

-1.01

281.65

0.26

0.22

7259900

10.21

0.31

824.15

0.26

0.15

1173000

6.29

0.34

186.13

0.21

0.11

25102000

11.95

0.62

1,032.9

0.18

-0.02

372500

2.6

0.66

871.9

0.17

0.52

477250

7.83

0.25

3,954.8

0.17

0.01

1473900

22.15

-0.8

349.2

0.17

0.03

8664075

16.41

-0.75

155.65

0.16

0.17

12365000

7.85

0.53

1,833.8

0.15

0

2338425

11.01

0.33

1,040.2

0.14

0.31

15002250

18.42

0.6

568.85

0.13

0.29

5852000

12.15

0.54

3,166.8

0.11

0.17

1224567

6.72

0.52

407.95

0.09

0.1

20832075

17.71

0.55

5,330

0.09

0

123250

5.19

-1.12

1,015

0.09

0.2

3101700

8

0.59

2,889.5

0.09

-0.16

130200

3.61

-0.12

169.17

0.08

0.07

11801475

7.77

0.52

1,826.7

0.08

0.28

899625

11.13

0.54

434.8

0.08

0

2670000

3.17

0.36

247.07

0.07

0.1

7823250

8.49

0.32

1,206

0.05

0.26

384450

2.55

0.24

1,155

0.05

0.19

173250

3.51

0.42

88.29

0.04

-0.01

24971275

21.63

-0.65

3,783.7

0.01

0.21

1757875

11.23

0.51

402.95

0.01

-0.02

4986800

8.66

-0.55

105.59

0

0.04

38768000

10.92

0.57

11,775

0

0.73

284600

11.38

0.58

733.85

-0.02

0.07

557000

2.07

0.49

3,651.7

-0.04

0.38

683375

14.9

-0.86

343

-0.08

0.13

15424500

10.98

-0.13

1,026.8

-0.08

0.14

4204200

12.36

0.81

4,624.9

-0.09

0.28

834400

12.84

0.52

1,795.4

-0.1

0.05

121450

2.05

0.47

1,258.3

-0.1

-0.02

2366400

24.34

-2.98

2,678.3

-0.11

0.23

1625500

18.51

0.88

7,690

-0.14

0.72

443250

15.19

-0.93

286.05

-0.15

0.55

10277150

6.37

0.12

546.1

-0.16

0.11

3107000

12.4

-1.16

2,858.4

-0.16

0.08

2720700

17.32

-0.46

427.5

-0.17

0.1

10242450

13.22

-1.22

143.85

-0.19

0.16

4514100

2.89

0.82

4,090.6

-0.19

0.95

15750

3.3

-0.91

312.05

-0.2

-0.01

2320625

5.29

0.62

332.35

-0.21

0.14

13788800

13.38

0.54

1,645

-0.22

0.13

62100

1.19

0.48

1,056.4

-0.22

0.03

175500

1.59

0.27

346.75

-0.23

1.17

3593725

10.2

-0.79

163.89

-0.23

0.19

6387300

3.15

0.13

2,124.6

-0.24

0.29

203225

10.14

-1.07

143.56

-0.25

0.16

3697200

3.65

0.64

119.65

-0.25

0.12

22362550

26.48

-2.38

248

-0.26

0.04

20749950

14.76

0.72

226.71

-0.28

0

8835750

19.99

-1.23

1,899.2

-0.28

0.86

31313900

49.17

0.6

1,999.2

-0.28

0.14

214775

4.38

0.31

18,456

-0.29

0.07

19800

7.77

-0.08

1,168.65

-0.29

0.16

4853750

24.15

-2.62

78.67

-0.31

0.24

13344000

11.07

-1.34

18,389

-0.31

0.29

99450

11.4

0.39

2,926.6

-0.32

-0.38

51400

2.66

0.11

377.2

-0.33

0.13

5631800

8.25

0.5

2,822.2

-0.33

0.05

2276575

23.73

-0.45

399.25

-0.36

0.12

4969350

11.1

0.55

278.8

-0.37

0.12

34141200

19.62

0.59

141.45

-0.38

0.09

10749375

6.8

-0.29

8,881

-0.39

0.31

214250

9.17

0.28

2,002.7

-0.39

0.12

350075

6.9

-1.63

683.85

-0.39

0.75

307475

1.9

-0.56

125.88

-0.4

0.01

42714000

11.08

0.49

308

-0.4

0.17

6619500

11.68

-0.77

618.8

-0.41

-0.01

2871245

9.23

0.35

1,086.1

-0.42

0.13

2109800

12.25

0.81

14,330

-0.42

0.64

327050

12.63

-0.55

79.16

-0.42

0.04

71315475

16.5

0.55

170.95

-0.44

0.16

5282400

6.54

0.4

542.9

-0.44

0.32

789050

2.99

0.43

1,372.8

-0.44

0.09

296250

3.6

-0.64

1,942.8

-0.45

0.28

958300

5.07

0.62

423.6

-0.46

0.04

1197500

3.7

0.69

465.9

-0.49

0.11

2849625

5.12

0.24

10,400

-0.49

0.12

12375

3.87

1.05

2,083.6

-0.5

0.11

81550

2.36

0.31

1,222.5

-0.51

0.53

2225625

12.87

-0.41

1,854.4

-0.52

0.15

936950

13.73

-0.83

1,417.7

-0.52

0.45

1327500

10.78

0.58

7,256

-0.54

-0.11

161000

3.76

0.55

405

-0.55

0.04

4032400

3.92

0.6

111.38

-0.57

0.11

5301000

4.21

0.32

749.7

-0.58

0.26

516450

6.53

0.1

487.65

-0.59

0.04

2462500

10.9

0.16

1,391

-0.6

0.86

1804050

16.84

0

836.85

-0.6

0.25

888000

6.19

0.08

324.15

-0.61

-0.17

1615625

3.37

0.18

2,626.7

-0.62

0.08

235550

7.4

-0.83

1,094.9

-0.62

0.14

523950

4.79

-0.3

3,487.6

-0.62

0.22

1660750

32.5

-1.47

494.9

-0.63

0.52

1207650

4.28

0.42

957.7

-0.63

0.61

328600

2.66

0.43

1,401.1

-0.65

-0.13

915600

11.73

0.37

3,664

-0.66

0.04

695400

7.83

0.51

51.76

-0.69

0.17

55346600

11.97

0.52

215.61

-0.69

0.86

15680350

9.5

0.29

83.94

-0.69

0.07

11745000

3.1

0.07

1,096

-0.7

0.09

337350

4.61

-0.39

1,166.1

-0.72

0.67

1440500

12.77

0.67

397.25

-0.72

-0.18

1131500

2.87

0.69

11,650

-0.73

0.28

52000

3.24

-0.04

78.31

-0.76

0.15

13017600

10.97

0.72

26,700

-0.76

0.09

7300

2.06

-0.73

1,146

-0.77

0.53

466200

4.3

0.64

13.84

-0.78

0.09

444145650

7.29

0.72

96.58

-0.79

0.29

6506500

5.61

1.65

1,028.2

-0.81

0.2

4185000

16.18

0.56

111.6

-0.82

0.19

1086400

2.38

0.45

256

-0.83

0.2

1711400

3.01

0.78

438.95

-0.83

-0.26

2432500

4.29

0.23

40,095

-0.84

0

9160

2.98

-0.76

1,535.6

-0.88

0.99

902400

3.86

0.47

616.05

-0.88

0.85

656450

5.09

-0.28

418.3

-0.88

0.26

2518750

11.67

-0.09

1,420.2

-0.92

0.15

774350

5.45

0.69

273.9

-0.92

0.14

452200

1.34

0.4

2,466.4

-0.94

0.36

226950

4.22

0.31

323.5

-0.94

0.33

636000

1.15

0.3

3,490

-0.95

0.5

65625

3.07

0.32

1,544.9

-0.95

0.3

1545300

9.01

0.16

915.9

-0.96

0.36

1655800

7.31

0.43

1,363.8

-0.98

0.16

1091825

13.3

-2.11

2,800.1

-0.99

0.31

1092600

12.67

-0.16

1,814.9

-0.99

0.33

63050

1.29

0.88

330.55

-1

3.17

2587500

9.51

0.42

1,536.2

-1

0.05

191950

1.65

0.5

2,529.3

-1.04

0.37

77750

2.58

0.45

1,562.7

-1.05

-0.04

62400

0.71

0.83

1,371.5

-1.05

0.56

134000

1.43

0.59

7,951

-1.09

0.14

32000

2.59

0.79

3,390

-1.15

0

374100

8.65

-1.39

2,268.7

-1.16

0.48

127875

1.1

0.41

23.51

-1.17

0.33

136000300

9.84

0.63

4,788.2

-1.18

-0.03

1622750

32.48

-1

951.4

-1.21

0.57

2494100

4.57

0.58

255.55

-1.27

0.16

5424550

7.68

0.29

1,706.3

-1.29

0.07

374725

11.38

-0.46

517.05

-1.3

0.21

2032275

6.36

0.53

4,525

-1.34

0.38

216750

12.27

0.11

268.94

-1.55

0.36

2885325

5.39

0.76

5,637.5

-1.57

0.15

17875

1.12

0.15

33,000

-1.65

0.36

25775

5.19

-0.1

2,950

-1.66

0.23

322300

4.63

0.31

1,339.8

-1.7

0.11

523450

2.1

0.5

1,080.9

-1.78

1.02

153400

1.88

-0.19

499.85

-1.81

0.89

1868500

8.4

0.53

5,468.5

-1.82

1.01

128200

2.57

0.44

172.08

-2.3

0.93

79932000

19.86

-1.29

347.5

-2.36

0.4

2484375

5.13

0.37

1,579

-2.56

2.54

580125

8.5

0.07

4,902

-2.64

1.67

483700

18.51

-1.34

8,975

-2.88

6.47

225625

8.14

-0.81

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Arbitrage Opportunities

Premium

Discount

Script
Spot
Future
Premium(%)

DMART

3,950.90

3,951.00

0.00%

INDIGO

5,265.50

5,266.00

0.00%

MAXHEALTH

1,098.20

1,098.30

0.00%

AMBUJACEM

433.60

433.70

0.02%

PIDILITIND

1,559.60

1,560.10

0.03%

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?

downArrow

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?

downArrow

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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