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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

1,604.95

0.73

33.33

0

0

N/A

74,495.6

-0.15

0.13

700

3.52

0.47

24,395

-0.29

0.99

2175940

14.49

0.53

15,021.55

-0.35

0.23

111240

5.91

0.43

57,600

-0.45

2.06

230670

9.72

0.64

26,292.7

-0.52

3.04

0

0

N/A

STOCKS

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

14.13

4.2

-0.18

377173575

6.1

0.84

507.55

3.63

9.05

4747500

15.16

-1.41

11,764

3.45

1.44

65900

5.24

-0.11

1,333.4

3.01

4.51

339000

4.32

0.5

1,564.6

3

5.56

142800

1.37

0.65

8,870

2.86

-6.7

496000

16.97

0.56

1,995

2.38

0.48

6733600

11.28

0.57

390

2.02

-0.05

6842550

10.31

0.66

1,691

1.95

-0.33

3644200

15.37

0.53

2,453.9

1.94

-0.23

90000

2.8

0.45

3,021.4

1.74

-1.56

1011357

6.05

0.64

1,343.6

1.55

-0.02

661800

2.39

0.72

5,605

1.5

0.4

140250

3.93

0.04

1,547

1.44

0.44

148000

1.93

0.7

1,294.9

1.41

0.38

317500

3.64

0.69

1,609.6

1.34

4.29

407700

1.98

0.16

424.8

1.28

-0.18

4662000

5.93

0.65

5,414

1.2

1.06

441600

8.9

0.48

1,851.5

1.11

0.01

0

0

N/A

2,086.8

1.11

2.08

801850

10.56

0.34

35,805

1.08

-0.37

30275

5.11

0.64

281.2

1.07

0.31

421800

1.31

0.32

915.3

0.98

1.3

3341025

23.06

0.56

36,870

0.97

7.94

13860

5.15

0.24

7,279

0.9

-5.6

107400

7.57

-0.6

4,346.1

0.89

0.38

90000

3.08

0.45

511.2

0.81

2.85

615125

3.26

0.6

387.05

0.78

1.04

6189700

6.18

0.51

1,705.8

0.73

2.43

718000

10.73

0.53

2,489.7

0.72

-0.61

791700

16.79

-1

47,160

0.55

0.46

16575

7.4

0.5

318.3

0.55

1.49

3298250

7.6

0.54

1,745.4

0.51

0.39

82950

0.98

0.48

185.39

0.5

-0.04

29775000

12.68

-0.25

1,243.9

0.5

2.12

2031875

15.04

-2.32

11,797

0.49

0.87

44700

2.42

0.26

8,529.5

0.48

-0.14

754400

21.61

0.87

5,073.8

0.43

0.1

975275

16.28

0.73

413.6

0.4

-0.86

4874800

8.26

0.53

888.1

0.39

0.31

1618400

7.71

0.43

8,120

0.39

0.01

489300

12.35

0.52

1,511.1

0.39

1.81

1969500

19.78

0.46

187.11

0.39

2.47

5655150

4.81

0.57

4,964.4

0.34

-0.3

818550

11.19

0.75

1,633.9

0.31

0.62

109850

1.93

0.69

178.05

0.29

1.51

6695000

4.65

0.71

1,097.6

0.27

0.69

845625

5.52

0.68

249.92

0.26

0.64

12375675

8.65

0.51

1,852.7

0.25

0.28

212450

3.89

0.24

13,940

0.19

0.07

237000

11.49

0.77

540.25

0.18

0.06

10133200

17.1

0.69

3,502.3

0.17

0.62

49175

2.15

0.56

3,012.5

0.16

3.13

1025550

8.31

-0.18

14,090

0.11

0.06

380700

13.24

-0.77

864.35

0.1

0.33

1400400

7.87

0.67

4,081.1

0.1

-0.24

404100

7.54

0.06

666.95

0.09

0.34

1405050

2.77

0.77

74.09

0.09

0.64

11219200

9.36

0.44

168.37

0.07

0.49

4323450

3.33

0.63

4,344.3

0.05

-0.29

654850

7.8

0.46

4,908.5

0.03

-0.06

71500

1.85

0.31

144.79

0.02

-0.4

5018000

5.5

0.49

561.5

0

0.6

1434050

5.26

0.43

353.75

0

0.29

10137500

10.53

0.35

1,245.3

0

0.86

66000

1.23

-0.44

2,327

0

-0.09

204375

1.73

0.52

318.9

-0.01

2.46

17467275

10.59

0.31

2,767.5

-0.02

0.27

48600

2.13

0.7

329.95

-0.04

-0.04

1671875

3.28

0.59

410.75

-0.04

-0.09

22311225

18.6

0.69

5,358.5

-0.05

-0.1

451800

7.79

0.69

2,531.8

-0.08

0.24

81950

1.85

0.42

1,173.5

-0.09

0.25

4198800

4.86

0.19

11,672

-0.1

0.36

333550

15.88

0.39

1,023.5

-0.12

-0.05

4734100

12.53

0.58

1,092

-0.13

0.21

15059250

21.87

0.59

348.6

-0.14

-0.57

1041000

1.48

-0.77

2,608.8

-0.14

-0.29

182600

3.69

0.11

728.8

-0.15

0.29

76005150

19.32

0.64

2,678.1

-0.15

0.06

1288700

15.15

-0.39

206.63

-0.15

0.26

13365750

7.71

0.45

2,026.4

-0.16

0.04

1848900

19.78

0.57

1,463.8

-0.18

1.95

2369800

20.43

0.58

1,896.8

-0.18

0.05

43400

1.14

0.55

47.52

-0.18

0.01

43954700

8.69

0.33

409.95

-0.19

1.36

3546250

11.46

0.62

1,366.9

-0.19

-0.24

880800

3.26

0.08

3,787.1

-0.2

-0.03

265625

10.83

0.12

1,176.2

-0.22

2.83

315500

6.89

-0.07

937

-0.22

0.03

1737000

9.66

0.56

391.8

-0.24

0.7

37146000

18.49

0.66

118.08

-0.24

0.01

27600000

9.14

0.58

5,840.5

-0.24

0.18

183900

4.3

0.65

1,412.1

-0.26

-1.03

15457400

14.52

0.58

247.3

-0.32

0.23

3459350

4.89

0.76

102.74

-0.35

0.47

12875850

8.9

0.54

277.65

-0.35

0.75

32307525

16.82

0.61

3,411.9

-0.36

-0.63

3296600

22.86

0.67

2,573.6

-0.37

1.95

543150

9.4

-0.18

2,365

-0.37

-0.06

2529675

7.57

0.46

11,484

-0.38

-0.32

13725

4.06

0.26

3,241.9

-0.38

-0.39

479000

4.01

0.88

267.3

-0.39

-0.09

21561200

28.63

0.74

4,054.2

-0.4

0.39

2701300

20.56

0.55

1,604.7

-0.4

0.57

66150

1.18

0.81

269.15

-0.42

2.27

4220500

6.31

0.66

4,636.5

-0.43

2.86

24300

2.56

0.33

5,421.5

-0.44

1.71

25750

1.69

0.35

139.59

-0.44

-0.18

10910250

6.54

0.53

385.55

-0.45

0.89

866775

2.01

0.25

174.37

-0.45

-0.01

5474100

5.98

0.04

7,702

-0.46

0.56

101125

4.58

0.32

1,129.2

-0.46

0.75

5909475

19.37

0.69

1,087.5

-0.49

0.26

2206050

12.72

0.68

794.55

-0.5

0.7

813400

5.83

-0.16

1,512.6

-0.5

0.65

933400

16.19

-0.42

9,270

-0.5

1.06

93125

4.06

0.63

418

-0.51

0.79

4208400

4.69

0.68

168.7

-0.51

-1.03

45599400

21.7

-1.14

2,156.9

-0.53

0.37

168025

8.76

-0.18

77.21

-0.54

-0.48

12454400

8.81

-0.79

2,080.1

-0.54

0.45

3928500

21.6

0.71

613.55

-0.55

0.25

1984500

6.37

0.32

1,269.1

-0.57

-0.05

2036475

4.76

0.63

130.84

-0.62

-0.13

26102250

6.55

0.68

1,084.3

-0.62

0.99

2878000

11.91

0.69

1,192.5

-0.62

3.15

1958750

11.71

-0.1

349

-0.62

0.56

2403700

6.19

0.28

720.5

-0.63

0.37

5369000

20.42

0.34

616.75

-0.63

-0.13

1931300

13.26

-0.7

2,248.2

-0.63

0.55

444550

5.2

0.56

287.9

-0.63

2.88

3357500

9.46

0.5

490.05

-0.65

0.84

2097000

6.05

0.6

562.8

-0.67

0.17

2131415

5.59

0.66

2,954.4

-0.69

-0.79

943875

10.47

0.12

2,071.3

-0.7

0.46

501500

5.45

0.33

1,980.2

-0.7

1.5

295350

5.28

0.54

1,927.5

-0.71

-0.2

3269000

18.71

0.65

18,411

-0.71

1.07

29225

10.78

0.15

888.5

-0.72

0.68

303000

2.59

0.76

418

-0.72

1.04

2122500

4.19

0.59

115.43

-0.73

0.76

28883075

25.28

-2.23

1,217.1

-0.74

1.49

14098125

14.77

0.64

406.75

-0.74

0.18

5688900

6.74

-0.6

1,306.3

-0.74

0.95

24348000

18.59

0.61

5,570

-0.75

0.98

64000

3.38

0.53

3,960

-0.76

0.85

187075

5.23

-0.09

1,376.1

-0.77

6.2

1244400

14.15

-1.18

1,349

-0.77

0.94

444400

3.44

0.48

2,480.1

-0.78

0.82

642300

8.08

0.65

182.91

-0.78

0.33

50998750

22.05

0.59

1,346.1

-0.78

0.16

1068750

9.26

0.49

1,072.1

-0.82

0.42

18001500

18.34

0.65

1,818.3

-0.83

0.17

339625

2.34

0.2

376.7

-0.84

0.41

21704800

25.27

-0.33

895.1

-0.85

1.19

264275

3.95

0.72

1,162.5

-0.88

-0.35

585625

7.29

-0.64

1,005.6

-0.88

4.83

391125

3.14

0.55

611.4

-0.89

-0.81

652650

4.54

0.56

1,803

-0.89

3.89

950625

14.12

0.66

1,902.4

-0.9

-0.3

2983125

18.94

0.66

226.67

-0.9

0.37

6889575

15.5

-0.59

2,856

-0.91

0.52

381425

4.88

0.63

276.55

-0.93

-0.24

14450350

15.96

-0.9

921.55

-0.93

1.57

357650

7.43

-0.38

105.91

-0.99

0.33

5499900

9.93

0.55

22.79

-0.99

0.66

130091300

10.36

0.7

124.54

-1.01

0.46

2466450

3.31

0.74

173.75

-1.02

-0.16

4136400

3.1

-0.17

83.84

-1.02

0.92

47223000

11.9

-0.16

5,707

-1.03

0.08

72625

4.28

-0.3

86.04

-1.03

-0.21

43611050

11.14

0.59

533

-1.03

0.34

1263750

5.2

0.53

766.1

-1.07

1.06

550275

6.72

0.58

1,033.55

-1.07

0.85

5630800

10.97

0.66

465.5

-1.08

-1.8

852825

3.21

0.3

637.55

-1.13

2.6

3134400

11.44

-1.09

87.71

-1.16

0.41

18992925

17.09

-0.37

2,007

-1.16

0.63

398450

4.44

0.52

402.8

-1.21

1.14

1506600

3.65

0.67

339.3

-1.25

0.27

32010000

24.68

-0.42

1,022

-1.26

-0.9

315250

3.95

-0.12

1,151

-1.27

-0.2

196950

2.34

0.6

434.85

-1.33

0.16

2513025

4.36

0.72

236.47

-1.39

1.26

15192000

22.4

0.32

1,625.1

-1.4

1.55

407400

2.2

0.44

2,206.6

-1.46

-1.11

135300

4.01

0.01

1,568.4

-1.47

-2.2

995775

12.96

-1.2

1,154.6

-1.54

1.39

358200

3.19

0.33

24,850

-1.54

-1.4

24500

6.23

-0.44

1,619.2

-1.58

-0.22

2467175

12.64

0.62

4,714.9

-1.62

0.28

390000

10.69

-0.4

1,638.2

-1.64

0.07

247500

2.36

0.45

20,072

-1.68

4.63

102150

11.48

0.68

1,489.6

-1.74

-0.88

247600

4.56

0.1

471.4

-1.75

-0.48

490000

3.26

-0.1

250.85

-1.76

2.64

32712000

14.24

0.67

1,811.3

-1.82

0.18

2405500

12.87

-0.18

309.35

-1.94

1.04

2729250

5.9

-0.03

2,694.8

-2.02

2.31

1487750

16.61

0.67

3,446.1

-2.06

6.53

1483800

12.9

0.58

3,686.5

-2.23

1.3

311850

7.85

-0.27

89.8

-2.66

1.35

7962500

7.15

0.13

335.2

-2.72

0.03

6855975

14.51

0.01

559.5

-3.05

0.24

4188275

13.17

0.56

333.2

-5.05

10.51

13707200

13.93

0.61

372.15

-5.17

-0.48

2713500

6.12

0.67

377.95

-5.74

2.18

3208125

7.19

0.66

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Arbitrage Opportunities

Premium

Discount

Script
Spot
Future
Premium(%)

RADICO

4,636.30

4,636.50

0.00%

PRESTIGE

1,604.60

1,604.70

0.00%

COALINDIA

406.70

406.75

0.01%

NHPC

77.20

77.21

0.01%

ASIANPAINT

2,694.30

2,694.80

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

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.
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.
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.
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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ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099

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