Professional Documents
Culture Documents
ON
DERIVATIVES MARKET
APPLICATION OF FUTURES AND OPTIONS AS A
HEDGING TOOLS
By
SONAM JAIN
ENROLLMENT NO.227309672054
ABSTRACT
Considering the current volatility in the economy and subsequently in the
stock markets due to complexity created by multiple macro-economic variables
and growing international trade, the role of Financial Derivatives is increasingly
becoming more and more important.
A derivative is a financial instrument, whose value is derived from the
value of one or more basic variables called bases, in a contractual manner. Bases
may be underlying assets, commodities, index, or reference rate). In recent
years, the role of financial derivatives is becoming increasingly important as a
tool to hedge the risk.
This Project is in all its spirit, a practical application of theoretical aspects
of the derivatives market. To understand the working of derivatives we firstly
need to concentrate on understanding the working of the derivative markets in
the world as well as inIndia. Then in this project we proceed with understanding
the different types of derivatives commonly found and prevalent in India. This
study would include understanding the risks and characteristics associated with
each of these derivatives. A wide variety of literature has been read and
reviewed through various mediums so as to understand the above mentioned
aspects of the project.
This study includes the application of two hedging strategies called as
short future and short put,to minimize the loss.
ACKNOWLEDGMENT
I would like to express my profound gratitude to all those who have been helpful in
the
preparation of my project report. To start with, I would like to thank the organization
Indiabulls
Securities Limited. for providing me the opportunity to undertake the project in
their company.
I am deeply indebted to Mr for his continuous support, and for the effort
which he has taken through out my internship study.
I am deeply grateful, to my faculty guide Mrs.SUDHA for his invaluable suggestions,
comments, feedback and support throughout the internship.
SONAM JAIN
TABLE OF CONTENTS
1. INTRODUCTION
1.1 OBJECTIVES OF THE STUDY
1.2 METHODOLOGY
2. LITERATURE REVIEW
2.1
DERIVATIVES
2.2
DERIVATIVES PRODUCTS
2.3
TERMINOLOGY OF DERIVATIVES
2.4
USE OF DERIVATIVES
2.5
HEDGING
2.6
SHORT SELLING
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2.7
SHORT FUTURES
18
2.8
OPTIONS
2.9
OPTION NOMENCLATURE
2.10
8
8
10
12
13
19
19
PRICING OF OPTIONS
20
23
26
3. COMPANY ANALYSIS
3.1 ABOUT INDIA BULLS SECURITIES LTD
3.2 PROFILE OF THE COMPANY
27
28
28
29
ANNEXURES
ANNEXURE1:CALCULATION OF RETURNSUNITECH........................................32
ANNEXURE 2: CALCULATION OF RETURNSTCS...............................................35
ANNEXURE 3: CALCULATION OF RETURNS -SAIL .....................................38
ANNEXURE 4: CALCULATION OF RETURNS RELIANCE..................................41
ANNEXURE 5: CALCULATION OF RETURNS BHARTAIRTL................................44
ANNEXURE 6: CALCULATION OF RETURNS
TATASTEEL .............................47
ANNEXURE 7: CALCULATION OF RETURNS
INFOSYSTECH ............................50
ANNEXURE 8: CALCULATION OF RETURNS TATAMOTORS53
ANNEXURE 9CALCULATION OF RETURNS RELIANCE CAPITAL56
ANNEXURE 10: CALCULATION OF RETURNS HINDUSTANUNILEVER
59
5. FINDINGS AND SUGGESTIONS
62
6. CONCLUSION
63
7. BIBLIOGRAPHY
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1.INTRODUCTION
1.1 OBJECTIVES OF THE STUDY
1. To understand the nature and working of derivatives and its various types.
2. To understand the scope of the Indian market for derivatives
3. To understand the need and usefulness for using futures and options as a
hedging tool .
1.2 METHODOLOGY
This project aims at a theoretical as well as practical understanding of the
derivatives market and various strategies that are used by investors for trading
and hedging their returns in the derivatives markets
Firstly, an immense learning experience both on the theoretical and
practical aspects of derivatives and hedging strategies had been provided
throughout our duration at the company. This helped to understand the general
nature of operation of the company and understand reasons as to why
consumers use options for trading strategies in the company. Later we were
made to practically understand the trading mechanism for the cash as well as
derivatives market by exposure to the trading softwares used in the company
for both the offline and online setup. For more theoretical in depth
understanding of the topics relevant to the project a lot of relevant literature
has been read and understood for analyzing different views on the topics.
Each strategy was understood from the perspective of five different criteria of
profit, loss, when to use, time decay and break even.
The company then provided me with a clients portfolio so as to
understand the practical application of all the strategies on a clients portfolio.
Then analyzing the returns through the strategies the magnitude of returns as
well as the risk associated is determined by different statistical tools like mean,
standard deviation, etc. This then helps us to suggest strategies for different
investors according to their risk appetite and return expected
4. Although varied gains could have been possible by selling the options at
different stages of the duration, they have assumed to be held till expiry
to analyze the complete effects of such strategies particularly.
5. The options have been priced (premiums) at the closing price of the
opening day of the series i.e., 1st Jan Hence the investment in the options
of the stocks is also considered to be according the closing levels of the
premium on that day.
6. Likewise as above, even the stock futures and the cash prices of the stock
considered are the closing prices of each particular day and the purchase
prices are the first days closing prices i.e., 1st Jan.
2. LITERATURE REVIEW
2.1DERIVATIVES
AN INTRODUCTION
Derivatives are financial instruments whose value is derived from the value of
other, more basic underlying assets called bases, in a contractual manner.
Underlying asset can be a commodity, currency, equity, interest rate, exchange
rate etc. A very basic example of a financial derivative is a farmer producing
sugarcane entering into a contract to sell his harvests at a future date at a
predetermined price, in order to eliminate the risk of change in demand and
hence a change in price by that pre-specified date. The price of such derivative
is driven by the spot price of sugarcane which in this case is the underlying.
Swaps: Swaps are private agreements between two parties to exchange cash
flows in future according to a prearranged formula. The two commonly used
swaps are:
Interest rate swaps: These entail swapping only the interest related cash flows
between the parties in the same currency.
Currency Swaps: These entail swapping both principal and interest between
the parties, with the cash flow in one direction being in a different currency than
those in the opposite direction.
Of all these derivative products, only Futures and Options are traded on the
Indian Stock exchanges.
WHY DERIVATIVES?
Basically, there are three broad categories of participants operating in the
derivative markets.
These categories represent different purpose for which derivatives are used.
These participants are:
Hedgers use futures and options markets to reduce or eliminate risk (which is
associated with the price of an asset). A hedge is an investment that is taken
out specifically to reduce or cancel out the risk in another investment. Hedging
is a strategy designed to minimize exposure to an unwanted business risk, while
still allowing the business to profit from an investment activity.
Speculators wish to bet on future movements in the price of an asset. Futures
and
Options can give them an extra leverage; that is they can increase both the
potential gains and the potential losses in a speculative venture. Financial
speculation, involves the buying, holding, selling, and short-selling of stocks,
bonds, commodities, currencies, collectibles, real estate, derivatives, or any
valuable financial instrument to profit from fluctuations in its price as opposed
to buying it for use or for income via methods such as dividends or interest.
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Spot price(ST)
Spot price of an underlying asset is the price that is quoted for immediate delivery of an asset.for
example in NSE ,the spot price of reliance ltd.At any given time is the price are which the reliance
ltd.shares are being traded at that point of time in the cash market segment of the NSE.spot price is
also referred to as cash price some times.
Forward price or an future price is the price that is agreed upon at the date of contract for the
delivery of an asset at a specific future date.these prices are dependent on the spot price,the
prevailing interest rate and the expiry date of the contract.
STRIKE PRICE(K)
The price at which the buyer of an option can buy the stock(in case of call option) or sell the stock(in
case of put option) on or before the expiry date of option contracts is called strike price.It is the price
at which the stock will be bought and sold when the option is exercised.strike price is used in case of
option only;it is not used for futures or forwards.
EXPIRATION DATE
In the case of futures ,forwards and index options,Expiration date is the only date on which
settlement takes place.In case of stock options,on the other hand,expiration date (or simply expiry),is
the last date on which the option can be exercised.It is also called the final settlement date.
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TYPES OF OPTIONS:
Options can be divided into two different categories depending upon the primary exercise styles
associated with the options.These two categories are;
a.EUROPEAN OPTIONS:European options are the options that can be exercised only on the
expiration date.All options based on indices such as Nifty,MinyNifty,CNX IT traded at the NSE
are European options which can be exercised by the buyer(of the option) only at the expiry date.
b.AMERICAN OPTIONS:American options are options that can be exercised on any day on or
before the expiry date.All options on individual stocks like Reliance,SBI and Infosys traded at
NSE are American options.they can be exercised by the buyer on any day on or before the
settlement.
CONTRACT SIZE:
The futures and options are standardized contract traded on an exchange,they have a fixed contract
size . one contract of a derivatives instrument represents a certain number of shares of the underlying
asset.For example ,if one contract of BHEL consists of 300 shares of BHEL ,then if one buys one
future contract of BHEL,Then for every Re 1 increase in BHELS futures price ,the buyer will make
the profit if 300 x 1=Rs.300 and for every Re 1 fall in future price ,he will loose Rs 300.
CONTRACT VALUE
Contract value is the notional value of transaction in case one contract is bought or sold .It is is the
contract size multiplied by the size of the futures . contract value is used to calculate margins etc. for
contracts.In the example above if BHEL futures are trading at Rs.2000 the contract value would be
Rs.2000*300=Rs.6 lacs.
MARGINS
In the spot market ,the buyer of a stock has to pay the entire transaction amount(for purchasing the
stock)to the seller.For example,if Infosys is trading at Rs 2000 a share and an investor wants to buy
100 infosys shares ,then he has to pay Rs 2000 x 100=Rs.200000 to the seller.The settlement will
take place on T+2 basis;that is two days after the transaction date.
In a derivatives contract a person enters in to a trade today(buy or sell) but the settlement happens on
a future date.Because of this ,there is a high possibility of default by any of the parties.Futures and
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12
option contracts are traded through exchanges and the counter party risk is taken care of bythe
clearing corporation .In order to prevent any of the parties from defaulting on his trade
commitement,the clearing corporation levies a margin on the buyer as well as seller of the futures
and option contracts.This margin is percentage(approximately 20%)of the total contract value.Thus
for the aforementioned example,if a person wants to buy 100 INFOSYS futures ,then he will have to
pay 20% of the contract value of Rs 2,00,000=Rs 40,000 as a margin to the clearing corporation.This
margin is applicable to both the buyer and the seller of the future contract.
2.4 USE OF DERIVATIVES:
2.4.1 RISK MANAGEMENT:
The most important purpose of the derivative market is risk management.Risk management for an
investor consists of the following three processes:
Identifying the desired level of risk that the investor is willing to take on his investments;
Identifying and measuring the actual level of risk that the investor is carrying and
Making arrangements which may include trading of derivative contracts that allow him to match the
actual and desired level of risk.
2.4.2 MARKET EFFICIENCY:
Efficient markets are fair and competitive and do not allow any investor to make risk free
profits.Derivatives assists in improving the efficiency of market,By providing self correct
mechanism.Risk free profits are not easy to make in more efficient markets.when trading occurs
,there is a possibility that some amount of mispricing might occur in the market.The arbitrageurs
steps in to take the advantage of the mispricing by buying from the cheaper market and selling in the
higher market.Their actions quickly narrow the prices and thereby reducing the inefficiencies.
2.4.3 PRICE DISCOVERY
One of the primary function of derivative market is price discovery.They provide the valuable
information about the prices and expected price fluctuations of the underlying assets in two ways :
First many of these assets are traded in the markets in different geographical locations.Because of
these assets may be traded at different prices in different markets.In derivative markets ,the price of
the contract often serves as the proxy for the price of the underlying asset.For example gold may
trade at different prices in Mumbai and Delhi but a derivative contract on gold would have one
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value and so traded in Mumbai and Delhi can validate the prices of the spot markets in their
respective location to see if it is cheap or expensive and trade accordingly.
Second the prices of the future contract serves as the price that can be used to get a sense of the
market expectation of future prices.For example,say there is an company that produces sugar and
expects that the production of sugar will take two months from today.As sugar prices fluctuates
daily,the company does not know if after two months the price of sugar will be higher or lower than
it is today.How does predict where the price of sugar will be in future?It can do this by monitoring
prices of the derivative contract on sugar.If the price of the sugar is trading higher than the spot price
that means that the market is expecting the sugar spot price to go up in the future .If there were no
derivative price it would have to wait for two months before knowing the market price of the sugar
that day .Based on derivatives price the management of the sugar company can make strategic and
tactical decisions of how much sugar to produce and when.
2.5 HEDGING:
The best way to understand hedging is to think of it as insurance. When people decide to hedge, they
are insuring themselves against a negative event. This doesn't prevent a negative event from
happening, but if it does happen and you're properly hedged, the impact of the event is reduced. So,
hedging occurs almost everywhere, and we see it everyday. For example, if you buy house
insurance, you are hedging yourself against fires, break-ins or other unforeseen disasters.
Portfolio managers, individual investors and corporations use hedging techniques to reduce their
exposure to various risks. In financial markets, however, hedging becomes more complicated than
simply paying an insurance company a fee every year. Hedging against investment risk means
strategically using instruments in the market to offset the risk of any adverse price movements. In
other words, investors hedge one investment by making another.
Technically, to hedge you would invest in two securities with negative correlations. Of course,
nothing in this world is free, so you still have to pay for this type of insurance in one form or
another.
Although some of us may fantasize about a world where profit potentials are limitless but also risk
free, hedging can't help us escape the hard reality of the risk-return tradeoff. A reduction in risk will
14
always mean a reduction in potential profits. So, hedging, for the most part, is a technique not by
which you will make money but by which you can reduce potential loss. If the investment you are
hedging against makes money, you will have typically reduced the profit that you could have made,
and if the investment loses money, your hedge, if successful, will reduce that loss.
EXAMPLE:
Say you own shares of Cory's Tequila Corporation (Ticker: CTC). Although you believe in this
company for the long run, you are a little worried about some short-term losses in the tequila
industry. To protect yourself from a fall in CTC you can buy a put option (a derivative) on the
company, which gives you the right to sell CTC at a specific price (strike price). This strategy is
known as a married put. If your stock price tumbles below the strike price, these losses will be offset
by gains in the put option. (For more information, see this article on married puts or this options
basics tutorial.)
The other classic hedging example involves a company that depends on a certain commodity. Let's
say Cory's Tequila Corporation is worried about the volatility in the price of agave, the plant used to
make tequila. The company would be in deep trouble if the price of agave were to skyrocket, which
would severelyeat into profit margins. To protect (hedge) against the uncertainty of agave prices,
CTC can enter into a futures contract (or its less regulated cousin, the forward contract), which
allows the company to buy the agave at a specific price at a set date in the future. Now CTC can
budget without worrying about the fluctuating commodity.
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If the agave skyrockets above that price specified by the futures contract, the hedge will have paid
off because CTC will save money by paying the lower price. However, if the price goes down, CTC
is still obligated to pay the price in the contract and actually would have been better off not hedging.
Keep in mind that because there are so many different types of options and futures contracts an
investor can hedge against nearly anything, whether a stock, commodity price, interest rate and
currency - investors can even hedge against the weather.
The Downside
Every hedge has a cost, so before you decide to use hedging, you must ask yourself if the benefits
received from it justify the expense. Remember, the goal of hedging isn't to make money but to
protect from losses. The cost of the hedge - whether it is the cost of an option or lost profits from
being on the wrong side of a futures contract - cannot be avoided. This is the price you have to pay
to avoid uncertainty.
2.6 SHORT SELL
In finance, short selling (also known as shorting or going short) is the practice of selling assets,
usually securities, that have been borrowed from a third party (usually a broker) with the intention of
buying identical assets back at a later date to return to the lender. It is a form of reverse trading.
Mathematically, it is equivalent to buying a "negative" amount of the assets. The short seller hopes to
profit from a decline in the price of the assets between the sale and the repurchase, as the seller will
pay less to buy the assets than the seller received on selling them. Conversely, the short seller will
incur a loss if the price of the assets rises. Other costs of shorting may include a fee for borrowing
the assets and payment of any dividends paid on the borrowed assets. "Shorting" and "going short"
also refer to entering into any derivative or other contract under which the investor profits from a fall
in the value of an asset.
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Going short can be contrasted with the more conventional practice of "going long", whereby an
investor profits from any increase in the price of the asset.
To profit from a decrease in the price of a security, a short seller can borrow the security and sell it
expecting that it will be cheaper to repurchase in the future. When the seller decides that the time is
right (or when the lender recalls the securities), the seller buys equivalent securities and returns them
to the lender. The process relies on the fact that the securities (or the other assets being sold short)
are fungible; the term "borrowing" is therefore used in the sense of borrowing $10, where a different
$10 note can be returned to the lender (as opposed to borrowing a car, where the same car must be
returned).
A short seller typically borrows through a broker, who is usually holding the securities for another
investor who owns the securities; the broker itself seldom purchases the securities to lend to the short
seller. The lender does not lose the right to sell the securities while they have been lent, as the broker
will usually hold a large pool of such securities for a number of investors which, as such securities
are fungible, can instead be transferred to any buyer. In most market conditions there is a ready
supply of securities to be borrowed, held by pension funds, mutual funds and other investors.
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The act of buying back the securities that were sold short is called "covering the short" or "covering
the position". A short position can be covered at any time before the securities are due to be returned.
Once the position is covered, the short seller will not be affected by any subsequent rises or falls in
the price of the securities, as he already holds the securities required to repay the lender.
The terms shorting and going short are also used as blanket terms for tactics that allow an investor
to gain from the decline in price of a security. Such tactics are generally based on a derivative
contract, such as an option, a future or a similar synthetic position. For example, a put option
consists of the right to sell an asset at a given strike price; the owner of the option therefore benefits
when the market price of the asset falls below that price, as he can buy the asset at the lower price
and sell it under the option at the strike price. Similarly, a short position in a futures contract means
the holder of the position has an obligation to sell the underlying asset later at a given price; if the
price falls below the given price, the person with the short position can buy the asset at the lower
price and sell it under the future at the higher price.
Worked examples
Profitable trade
Shares in C & Company currently trade at $10 per share.
1. A short seller borrows 100 shares of C & Company and immediately sells them for a total of
$1,000.
2. Subsequently, the price of the shares falls to $8 per share.
3. Short seller now buys 100 shares of C & Company for $800.
4. Short seller returns the shares to the lender, who accepts the return of the same number of
shares as was lent, despite the fact that the market value of the shares has decreased.
5. Short seller retains as profit the $200 difference (minus borrowing fees) between the price at
which he sold the shares he borrowed and the lower price at which he was able to purchase
the shares he returned.
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Loss-making trade
Shares in C & Company currently trade at $10 per share.
1. A short seller borrows 100 shares of C & Company and immediately sells them for a total of
$1,000.
2. Subsequently the price of the shares rises to $25.
3. Short seller is required to return the shares and to meet the obligation, is compelled to buy
100 shares of C & Company for $2,500.
4. Short seller return the shares to the lender who accepts the return of the same number of
shares as was lent.
5. Short seller incurs as a loss the $1,500 difference between the price at which he sold the
shares he borrowed and the higher price at which he had to purchase the shares he returned
(plus borrowing fees
2.7 The Short Futures Position: How You Can Benefit Best
One of the most unique ways in which you can invest your money is through futures
trading. Most traders can actually maximize their profits from declining prices. Trading with
this kind of market involves the accuracy of the prediction of prices that each player makes.
And speaking of the players in the futures market, traders usually pick a position depending
on the purpose of his trade. In particular, traders who want to get involved on the market
floor must adopt a short position that could make profit out of a dip in futures contract. On
one hand, future traders choose the short position for various reasons. If you want to invest
and make it big in the futures market, the following pieces of information can guide you in
your trading futures venture.
Choosing the Trade Position
As mentioned earlier, the reasons traders take on the short position is because they might
be seeking offload contracts that they have profited already or they see significant play that
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19
will result in the lowering of the commodity prices through the futures contract. Hence, the
short position is actively done when the trader borrows a futures contract from the third
body. The short position then allows the trader to sell the contract at the current price in the
market for the hope of gaining profit in the days to come.
Adopting a Short Position
Once you decide to choose the short position in the trade futures, one of the things that you
will need is the service of a broker or third party to let you borrow a futures contract. When
the contract is in your hands, it is now the time that you sell it at its present price. After the
trader has made profit from the contract, he will have to return the futures contract to the
party whom he lent the contract.
Speculation is the game of the trade; hence, the investor adopting on a short futures
position must profit when the price of the contract flows through the date of expiration that
the he agreed with the third party. Moreover, taking the short position in trading futures in
the market or in online futures trading is basically about making a bet whether the futures
contract price will increase or decrease. If the price of the contract decreases, the trader
gets to win the contract.
The Advantage of Short Position
Every trade has its utmost advantage, and in the case of the short position in futures
trading, there are also favorable opportunities as well as the risk that investors have to deal
with. Two types of traders are generally the key players in the trading futures field; namely,
the speculators seeking profit from the decrease in the price of underlying commodity and
the producers who aim to lock the price of the commodity at the basic selling price. In these
two players, the producer takes the short position. The producer will then own the
commodity while the futures contract is still at hand with the contract buyer
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2.8 OPTIONS
An option contract is an agreement between two parties to buy/sell an asset
(stock or futures contract as an example) at a fixed price and fixed date in the
future.
An option gives the buyer, the right but not the obligation to buy certain
commodity at or before a future date at certain price. It is fundamentally
different from a futures contract. In options, the buyer may or may not exercise
his right to buyer. He can forego the contract after suffering a minimal loss of
the amount of premium paid. Trades in Options are also cash-settled.
There are two types of options:
1. CALL OPTION:
A call option gives the buyer a right to buy certain asset at or before a future
date at certain price.
Break-Even Point= Strike Price + Premium
2. PUT OPTION:
A put option gives the buyer of the contract a right to sell a particular asset on
or before a certain future date at a certain price. A put buyer is bearish about
the market. He expects the prices to fall and therefore he hedges his risk by
entering into a put agreement in which he can sell the asset in future at a predecided price. The break-even for a put option is:
Break Even Point= Strike Price Premium
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Option Buyer: The buyer of an option is the one who by paying the options
Premium buys the right but not the obligation to exercise his option on the
seller/writer.
Option Writer: The writer of a call/put options is the one who receives the
option premium and is thereby obliged to sell/buy the asset if the buyer
exercises the right on him.
Option price: Option prices are the price, which the option buyer pays to option
seller. It is also referred to as option premium.
Expiration date: The date specified in the options contract is known as the
expiration date. This is the last day on which the option is traded.
Strike price: The price specified in the options contract is known as the strike
price or the exercise price. This is the price at which the option can be
exercised.
In-the-money option: An in-the money (ITM) option that would lead to a Positive
cash flow to the holder if it were exercised immediately. A call option on the
Index is said to be in money when the current index is stands at a level higher
than the strike price, (i.e. spot price> strike price). In the case of a put, it is ITM
if the index is below the strike price.
At-the-money option: An at-the money (ATM) option is an option that would lead
to
Zero cash flow if it were exercised immediately. An option on the index is at-the
money when the current spot price equals the strike price (i.e. spot price =
strike price).
Out-of the money option: An out-of money (OTM) option is an option that would
lead to a negative cash flow it was exercised immediately. A call option on the
index is out-ofthe- money when the current spot price stands at a level, which is
less than the strike price.
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23
Most of the inputs for the Black Scholes Model are a given, i.e. we know with
certainty what the exercise price is, how many days until the option expires,
where the underlying instrument is currently trading and we also know what
interest rates currently are. However, we do not know what volatility the
underlying will experience between the time of trade and the expiry date. That
is why volatility is so important when it comes to option pricing - the volatility of
the underlying asset really determines how likely the option contract will be in,
at or out-of-the-money by the expiration date.
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25
As can be seen in Figure 1 above, when a put option is in the money, the
underlying price is less than the option strike price. For a call option, 'in the
money' means that the underlying price is greater than the option strike price.
For example, if we have an S&P 500 call with a strike price of 1100 (an example
we will use to illustrate time value below), and if the underlying stock index at
expiration closes at 1150, the option will have expired 50 points in the money
(1150 - 1100 =
50).
In the case of a put option at the same strike price of 1100 and the underlying
at 1050, the option at expiration also would be 50 points in the money (1100
-1050 = 50). For out-of-the-money options, the exact reverse applies. That is, to
be out of the money, the put's strike would be less than the underlying price,
and the call's strike would be greater than the underlying price.
Finally, both put and call options would be at the money when the strike price
and underlying expire at the exact same price. While we are referring here to
the position of the option at expiration, the same rules apply at any time before
the options expire.
With these basic relationships in mind, let's now take a closer look at time value
and the rate of time-value decay (represented by theta, from the Greek
alphabet). If we leave volatility aside for now, the time-value component of an
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option, also known as extrinsic value, is a function of two variables: (1) time
remaining until expiration and (2) the closeness of the option strike price to the
money. All other things remaining the same (i.e. no changes in the underlying
and volatility levels), the longer the time to expiration, the more value the
option will have in the form of time value. But this level is also affected by how
close to the money the option is. For example, two call options with the same
calendar month expiration (both having the same time remaining in the
contract life) but different strike prices will have different levels of extrinsic
value (time value). This is because one will be closer to the money than the
other.
Figure 2 below illustrates this concept, indicating when time-value would be
higher or lower and whether or not there will be any intrinsic value (which arises
when the option gets in the money) in the price of the option. As Figure 2
indicates, deep in-the-money options and deep out-of the money options have
little time value. Intrinsic value increases the more in the money the option
becomes. And at-the-money options have the maximum level of time value but
no intrinsic value. Time value is at its highest level when an option is at the
money because the potential for intrinsic value to begin to rise is the greatest
right at this point.
27
A call option gives the buyer, the right to buy the asset at a given price. This 'given price' is called
'strike price'. It should be noted that while the holder of the call option has a right to demand sale of
asset from the seller, the seller has only the obligation and not the right. For eg: if the buyer wants
to buy the asset, the seller has to sell it. He does not have a right.
Similarly a 'put' option gives the buyer a right to sell the asset at the 'strike price' to the buyer. Here
the buyer has the right to sell and the seller has the obligation to buy.
So in any options contract, the right to exercise the option is vested with the buyer of the contract.
The seller of the contract has only the obligation and no right. As the seller of the contract bears the
obligation, he is paid a price called as 'premium'. Therefore the price that is paid for buying an
option contract is called as premium
2.12 SHORT PUT:
A Bullish options strategy that involves selling short or "writing" a put option. When the stock rises above the
strike price of the short put by expiration, the put options expire worthless and entire premium from its sale is
earned.
The seller of the short put (gets the premium) is betting the stock price will be above the strike price on
expiration so he can keep the premium.
The buyer of the short put (pays the premium) bets the stock price will be below the strike price on expiration
so he can sell the shares at the strike price, i.e., above the (then) market price
28
trader will lose money, with the potential loss being up to the full value of the
stock.
Risk: Up to the full value of the stock.
Reward: Limited to the amount of Premium received
When to Use: Trader is very bullish on the stock.
Breakeven: Strike Price- Premium
The buyer of a put option will not exercise his option (to sell) if, on expiry, the price of the
asset in the spot market is more than the strike price of the call. For eg: B bought a put at a
strike price of Rs 600. On expiry the price of the asset is Rs 619. A will not exercise his put
option. Because he can sell the same asset in the market at Rs 619, rather than giving it to
the seller of the put option for Rs 600.
3. COMPANY ANALYSIS
3.1 ABOUT INDIABULLS SECURITIES LTD
Indiabulls Group is one of Indias top Business houses with spread over Real
Estate, Infrastructure, and Financial Services, Securities and Power sectors. The
group companies are listed on important Indian and Overseas markets.
Indiabulls has been conferred the status of a Business Super brand by The
Brand Council. Super brands India. Indiabulls Securities Limited is the first
brokerage house to be assigned the highest rating BQ-1 by CRISIL.
FINANCIAL SERVICES
29
SECURITIES
Equity Research
NRI Online Trading
Equity Research Securities
Commodities
REAL ESTATE
POWER BUSINESS
Power Trading
Hydro Power Project
Thermal Power Project
30
31
Research Analysts, PIB provides features like Technical Analysis to help them
analyze the behavior of a particular stock using popular technical analysis
indicators like Simple Moving Average, Stochastic, Relative Strength Index, etc.
Besides, one can also view Market Statistics section to view the days Top
Gainers / Losers, Most Active, Most Volatile, etc.
For day traders, PIB offers trading features like Intraday Charting, Hourly Tick
List and Alerts to help them track the movement of underlying scrip / index
during the day. Besides, one can also create multiple Market Watch windows to
view the latest market price of the stocks they want to track.
PIB provides an integrated online trading platform for the internet trading
community to invest in equity, F&O, Online IPOs and base their decision on
sound fundamental research and technical analysis. It also provides various
kinds of trading reports, each developed to cater to internet trading users
distinct needs. For ex., you can access Net Portfolio Report to view a list of
stocks that are available in your portfolio. To view your open positions in F&O
segment, you can access F&O Complete Position Report. PIB also provides
details about your current day's obligations in Current Obligations Report.
32
Apart from two passport size photographs, one needs to provide with the
following documents in order to open an account with INDIABULLS Securities
Limited.:
Photocopy of the clients PAN Card which should be duly attached
Photo copy of any of the following documents duly attached which will serve as
correspondence address proof:
Passport (valid)
Voters ID card
Ration Card
Driving License (valid)
Electricity Bill (should be latest and should be in the name of the client)
-
33
Telephone Bill (should be latest and should be in the name of the client)
Flat Maintenance Bill (should be latest and should be in the name of the client)
Insurance Policy (should be latest and should be in the name of the client)
Lease or Rent Agreement.
Saving Bank Statement** (should be latest)
Two cheques drawn in favour of Indiabulls Securities Ltd., one for the Account
Opening Fees and the other for the Margin Money (the minimum margin money
is Rs. 5000).
** A cancelled cheque should be given by the client if he provides Saving Bank
Statement as a proof for correspondence address.
NOTE: Only Saving Bank Account cheques are accepted for the purpose of
opening an account.
4.DATA ANALYSIS
ANNEXURE 1:
34
1.UNITECH:
DATE 3rd Jan 2011
Investment
266400
p/l
-89400
Buy Stock @66.6
SYMBOL
DATE
HIGHPRICE
LOW
PRICE
CLOSE PRICE
QTY
TOTAL VALUE
P/L
UNITECH
3-Jan-11
67.5
65.35
66.6
4000
266400
UNITECH
4-Jan-11
68
65.25
65.6
4000
262400
-4000
UNITECH
5-Jan-11
66.8
64.35
64.85
4000
259400
-7000
UNITECH
6-Jan-11
65.65
61.25
61.6
4000
246400
-20000
UNITECH
7-Jan-11
62.9
61.05
61.4
4000
245600
-20800
UNITECH
10-Jan-11
62.5
58.8
59.3
4000
237200
-29200
UNITECH
11-Jan-11
59.8
54.4
55.35
4000
221400
-45000
UNITECH
12-Jan-11
59.4
54.15
58.95
4000
235800
-30600
UNITECH
13-Jan-11
61.65
57.65
59.8
4000
239200
-27200
UNITECH
14-Jan-11
60.9
56.85
57.45
4000
229800
-36600
UNITECH
17-Jan-11
58.8
55.55
56.9
4000
227600
-38800
UNITECH
18-Jan-11
58.15
55.55
57.6
4000
230400
-36000
UNITECH
19-Jan-11
59.5
56.2
59.05
4000
236200
-30200
UNITECH
20-Jan-11
59.1
56.95
57.9
4000
231600
-34800
UNITECH
21-Jan-11
58.95
56.65
57.15
4000
228600
-37800
UNITECH
24-Jan-11
58.2
56.75
57.9
4000
231600
-34800
UNITECH
25-Jan-11
58.6
55.75
55.95
4000
223800
-42600
UNITECH
27-Jan-11
57
52.9
53.3
4000
213200
-53200
UNITECH
28-Jan-11
53.45
48.6
51.05
4000
204200
-62200
UNITECH
31-Jan-11
50.95
46.9
48.05
4000
192200
-74200
UNITECH
1-Feb-11
49
42.35
43.05
4000
172200
-94200
UNITECH
2-Feb-11
47.05
44
45.15
4000
180600
-85800
UNITECH
3-Feb-11
46.75
44.3
46.45
4000
185800
-80600
UNITECH
4-Feb-11
46.3
42.6
43.1
4000
172400
-94000
UNITECH
7-Feb-11
46
43.4
44.25
4000
177000
-89400
ANALYSIS:
rd
As on3
MARCH
the amount
invested
inRs
the66.6
shares of Unitech was 266400 by purchasing the
4000
quantity
of shares
at close
price of
But on 7th Feb the price of the shares of the company
fell down to Rs. 44.25 .
Thus by selling the shares after holding it till 7th Feb ,the total loss of Rs.89400 was observed.
a.SHORT FUTURE
Investment
p/l
EXP.DATE
249600
-72000
24-Feb-11
SHORT FUTURE @62.4
SYMBOL
DATE
HIGHPRICE
LOW PRICE
CLOSE PRICE
QTY
TOTAL VALUE
P/L
UNITECH
6-Jan-11
66.2
62.05
62.4
4000
249600
UNITECH
7-Jan-11
63.4
61.6
61.9
4000
247600
-2000
UNITECH
10-Jan-11
63
59.45
59.75
4000
239000
-10600
UNITECH
11-Jan-11
60.1
55
55.9
4000
223600
-26000
UNITECH
12-Jan-11
59.8
54.6
59.6
4000
238400
-11200
UNITECH
13-Jan-11
62
58.05
60.25
4000
241000
-8600
UNITECH
14-Jan-11
61.4
57.55
58.05
4000
232200
-17400
UNITECH
17-Jan-11
59
56.6
57.25
4000
229000
-20600
35
UNITECH
18-Jan-11
58.4
56.05
58.1
4000
232400
-17200
UNITECH
19-Jan-11
59.65
56.8
59.3
4000
237200
-12400
UNITECH
20-Jan-11
59.4
57.4
58.5
4000
234000
-15600
UNITECH
21-Jan-11
59.35
57.2
57.75
4000
231000
-18600
UNITECH
24-Jan-11
58.6
57.2
58.35
4000
233400
-16200
UNITECH
25-Jan-11
59
56.2
56.4
4000
225600
-24000
UNITECH
27-Jan-11
57.1
53.35
53.8
4000
215200
-34400
UNITECH
28-Jan-11
53.85
48.9
51.4
4000
205600
-44000
UNITECH
31-Jan-11
51.2
47.25
48.45
4000
193800
-55800
UNITECH
1-Feb-11
48.7
42.4
43.1
4000
172400
-77200
UNITECH
2-Feb-11
47.2
44.2
45.2
4000
180800
-68800
UNITECH
3-Feb-11
46.85
44.6
46.5
4000
186000
-63600
UNITECH
4-Feb-11
46
42.5
43
4000
172000
-77600
UNITECH
7-Feb-11
46.1
43.8
44.4
4000
177600
-72000
ANALYSIS:
Enter into short future
on 6th Jan at Rs.62.4
By holding it till 7TH Feb,we may reduce the loss from Rs
-89400 to -72000.
b.SHORT PUT:
DATE 3rd Jan 2011
Investment
p/l
EXP.DATE
16000
34000
24-Feb-11
SHORT PUT @4
SYMBOL
UNITECH
DATE
STK.PRICE
CLOSE PRICE
SETTLE PRICE
NO.OF CTRT
QTY
TOT.VALUE
P/L
6-Jan-11
55
1.6
4000
16000
UNITECH
7-Jan-11
55
1.5
4000
16000
UNITECH
10-Jan-11
55
4000
8000
-8000
UNITECH
11-Jan-11
55
3.95
3.95
4000
15800
-200
UNITECH
12-Jan-11
55
3.95
4000
15800
-200
UNITECH
13-Jan-11
55
3.95
2.6
4000
15800
-200
UNITECH
14-Jan-11
55
3.95
3.4
4000
15800
-200
UNITECH
17-Jan-11
55
3.95
3.3
4000
15800
-200
UNITECH
18-Jan-11
55
3.15
3.15
4000
12600
-3400
UNITECH
19-Jan-11
55
3.15
2.35
4000
12600
-3400
UNITECH
20-Jan-11
55
2.3
2.3
15
4000
9200
-6800
UNITECH
21-Jan-11
55
2.25
2.25
12
4000
9000
-7000
UNITECH
24-Jan-11
55
2.05
2.05
26
4000
8200
-7800
UNITECH
25-Jan-11
55
2.8
2.8
45
4000
11200
-4800
UNITECH
27-Jan-11
55
3.65
3.65
109
4000
14600
-1400
UNITECH
28-Jan-11
55
5.6
5.6
119
4000
22400
6400
UNITECH
31-Jan-11
55
7.55
7.55
33
4000
30200
14200
UNITECH
1-Feb-11
55
11.9
11.9
64
4000
47600
31600
UNITECH
2-Feb-11
55
12.95
12.95
15
4000
51800
35800
UNITECH
3-Feb-11
55
4000
36000
20000
UNITECH
4-Feb-11
55
12.5
12.5
4000
50000
34000
UNITECH
7-Feb-11
55
12.5
11.1
4000
50000
34000
ANALYSIS:
Enter into a short thput on 6th Jan at Rs 4
36
ANNEXURE2:
2.TATA CONSULTANCY SERVICES LTD
Investment
579025
p/l
-13450
DATE
LOWPRICE
CLOSEPRICE
DATE
HIGHPRICE
QTY
TOTALVALUE
TCS
3-Jan-11
1176.95
1154.55
1158.05
500
579025
TCS
4-Jan-11
1166.15
1138.1
1144.75
500
572375
-6650
TCS
5-Jan-11
1165.9
1141.75
1158.95
500
579475
450
TCS
6-Jan-11
1182
1153.1
1171.7
500
585850
6825
TCS
7-Jan-11
1186.85
1138.15
1142.65
500
571325
-7700
TCS
10-Jan11
1149
1121
1130.9
500
565450
-13575
TCS
11-Jan11
1135.55
1087.8
1098.5
500
549250
-29775
TCS
12-Jan11
1151.6
1108
1135.95
500
567975
-11050
TCS
13-Jan11
1155.95
1116.2
1124.25
500
562125
-16900
TCS
14-Jan11
1150
1120
1120.15
500
560075
-18950
TCS
17-Jan11
1146.55
1120
1137.4
500
568700
-10325
TCS
18-Jan11
1208.9
1164.35
1202.55
500
601275
22250
TCS
19-Jan11
1209
1185
1193
500
596500
17475
TCS
20-Jan11
1218.75
1180
1212.2
500
606100
27075
TCS
21-Jan11
1220
1204
1211.65
500
605825
26800
TCS
24-Jan11
1220
1198.25
1209.2
500
604600
25575
TCS
25-Jan11
1219.3
1180
1188.55
500
594275
15250
TCS
27-Jan11
1209.95
1181.6
1199.4
500
599700
20675
TCS
28-Jan11
1203.6
1165.25
1181.35
500
590675
11650
TCS
31-Jan11
1169
1128.55
1159.5
500
579750
725
TCS
1-Feb-11
1165
1133
1150.15
500
575075
-3950
TCS
2-Feb-11
1198.9
1162.35
1182.45
500
591225
12200
TCS
3-Feb-11
1195.7
1170.65
1183.7
500
591850
12825
TCS
4-Feb-11
1183.1
1140.25
1148.8
500
574400
-4625
TCS
7-Feb-11
1173.5
1126.5
1131.15
500
565575
-13450
ANALYSIS:
As on3rd MARCH
the amount
the
shares of TCS was Rs .579025 by purchasing the
500quantity
of shares
at closeinvested
price of in
Rs.
1158.05
But on 7th Feb the price of the shares of the company
fell down to Rs. 1131.15 .
Thus by selling the shares after holding it till 7th Feb ,the total loss of Rs. 13450 was observed.
b.SHORT FUTURE
SYMBOL
Investment
577675
p/l
-9075
DATE
EXP DATE
HIGHPRICE
TOTAL
VALUE
QTY
P/L
TCS
7-Jan-11
24-Feb-11
1199.2
1149.1
1153.35
500
576675
TCS
10-Jan-11
24-Feb-11
1160.3
1130
1133.3
500
566650
-10025
37
TCS
11-Jan-11
24-Feb-11
1137.7
1096
1106.25
500
553125
-23550
TCS
12-Jan-11
24-Feb-11
1158.35
1120.1
1139.65
500
569825
-6850
TCS
13-Jan-11
24-Feb-11
1160
1123.25
1130.8
500
565400
-11275
TCS
14-Jan-11
24-Feb-11
1159.15
1122.25
1125.85
500
562925
-13750
TCS
17-Jan-11
24-Feb-11
1150.1
1124.5
1142.2
500
571100
-5575
TCS
18-Jan-11
24-Feb-11
1212.2
1169.9
1208.55
500
604275
27600
TCS
19-Jan-11
24-Feb-11
1212
1190.6
1196.8
500
598400
21725
TCS
20-Jan-11
24-Feb-11
1221
1185.7
1217.8
500
608900
32225
TCS
21-Jan-11
24-Feb-11
1220.1
1208.2
1215.3
500
607650
30975
TCS
24-Jan-11
24-Feb-11
1221.7
1203.25
1211.15
500
605575
28900
TCS
25-Jan-11
24-Feb-11
1221.25
1185.9
1192.6
500
596300
19625
TCS
27-Jan-11
24-Feb-11
1211
1188
1202.3
500
601150
24475
TCS
28-Jan-11
24-Feb-11
1205
1172
1188.35
500
594175
17500
TCS
31-Jan-11
24-Feb-11
1175.25
1137
1161.6
500
580800
4125
TCS
1-Feb-11
24-Feb-11
1164.2
1135.5
1151.95
500
575975
-700
TCS
2-Feb-11
24-Feb-11
1201.7
1162
1183.15
500
591575
14900
TCS
3-Feb-11
24-Feb-11
1199.7
1172.5
1189.2
500
594600
17925
TCS
4-Feb-11
24-Feb-11
1189
1140
1145.45
500
572725
-3950
TCS
7-Feb-11
24-Feb-11
1170
1130.95
1135.2
500
567600
-9075
ANALYSIS:
Enter into short future
on 6th Jan at Rs. 1153.35
By holding it till 7TH Feb,we may reduce the loss Rs
13450
from
to 9075
b.SHORT PUT
DATE
Investment
1700
p/l
-100
EXP.DATE
24-Feb-11
SHORT PUT @3.4
SYMBOL
DATE
STK.PRICE
CLSPRICE
SET. PRICE
NO.OFCTRT
QTY
TOT.VAL
P/L
TCS
7-Jan-11
1000
3.4
3.4
500
1700
TCS
10-Jan-11
1000
3.4
3.2
500
1700
TCS
11-Jan-11
1000
10.55
10.55
500
5275
3575
TCS
12-Jan-11
1000
7.9
7.9
500
3950
2250
TCS
13-Jan-11
1000
10
10
500
5000
3300
TCS
14-Jan-11
1000
10.2
10.2
500
5100
3400
TCS
17-Jan-11
1000
10.25
10.25
500
5125
3425
TCS
18-Jan-11
1000
500
2500
800
TCS
19-Jan-11
1000
3.55
500
2500
800
TCS
20-Jan-11
1000
2.3
500
2500
800
TCS
21-Jan-11
1000
1.85
500
2500
800
TCS
24-Jan-11
1000
1.3
500
2500
800
38
TCS
25-Jan-11
1000
2.3
2.3
500
1150
-550
TCS
27-Jan-11
1000
2.7
2.7
500
1350
-350
TCS
28-Jan-11
1000
2.65
2.65
20
500
1325
-375
TCS
31-Jan-11
1000
30
500
2000
300
TCS
1-Feb-11
1000
3.85
3.85
35
500
1925
225
TCS
2-Feb-11
1000
2.7
2.7
34
500
1350
-350
TCS
TCS
3-Feb-11
4-Feb-11
1000
1000
2.2
3.3
2.2
3.3
11
11
500
500
1100
1650
-600
-50
TCS
7-Feb-11
1000
3.2
3.2
35
500
1600
-100
ANALYSIS:
Enter into a short thput on 6th Jan at Rs 3.4
ANNEXURE:3
3.SAIL
Investment
p/l
SYMBOL
DATE
DATE
3333333333333
LOW
PRICE
187950
-27550
HIGHPRICE
TOTAL
VALUE
P/L
SAIL
3-Jan-11
188.4
183.5
187.95
1000
187950
SAIL
4-Jan-11
189.7
187.1
189.2
1000
189200
1250
SAIL
5-Jan-11
188.4
184.2
185.55
1000
185550
-2400
SAIL
6-Jan-11
187.9
184.1
185.15
1000
185150
-2800
SAIL
7-Jan-11
186
178
178.85
1000
178850
-9100
SAIL
10-Jan-11
179.4
175.1
177.25
1000
177250
-10700
SAIL
11-Jan-11
177.8
171
175.65
1000
175650
-12300
SAIL
12-Jan-11
178.6
172.5
177
1000
177000
-10950
SAIL
13-Jan-11
179.8
171.3
172.3
1000
172300
-15650
SAIL
14-Jan-11
168
159.25
161.4
1000
161400
-26550
SAIL
17-Jan-11
162.9
156.4
157.15
1000
157150
-30800
SAIL
18-Jan-11
162.75
157.5
162
1000
162000
-25950
SAIL
19-Jan-11
171.5
162
169.75
1000
169750
-18200
SAIL
20-Jan-11
169.75
165.6
168.35
1000
168350
-19600
SAIL
21-Jan-11
168.95
166.8
167.7
1000
167700
-20250
SAIL
24-Jan-11
169
165
165.35
1000
165350
-22600
SAIL
25-Jan-11
167.8
159.55
160.85
1000
160850
-27100
SAIL
27-Jan-11
162.9
157.2
158.2
1000
158200
-29750
SAIL
28-Jan-11
160.5
155.35
158.35
1000
158350
-29600
SAIL
31-Jan-11
161.95
155.7
160.9
1000
160900
-27050
SAIL
1-Feb-11
162.9
157.4
160.8
1000
160800
-27150
SAIL
2-Feb-11
163
159.55
160.15
1000
160150
-27800
SAIL
3-Feb-11
165.15
158.5
164.4
1000
164400
-23550
SAIL
4-Feb-11
165.7
160.15
161.55
1000
161550
-26400
SAIL
7-Feb-11
162.75
159
160.4
1000
160400
-27550
ANALYSIS:
As on3rd MARCH the amount invested in the shares of SAIL was Rs . 187950 by purchasing the
1000 of shares at close price of RS.187.95
39
But on 7th Feb the price of the shares of the company fell down to Rs.
160.4
th
Thus by selling the shares after holding it till 7 Feb ,the total loss of Rs. -27550 was observed.
a.SHORT FUTURE:
DATE3rd Jan 2011
176050
Investment
p/l
-15250
Short future @176.05
SYMBOL
DATE
SAIL
7-Jan-11
HIGHPRICE
182
LOW PRICE
175.25
CLOSE PRICE
176.05
1000
176050
SAIL
10-Jan11
176.5
172.5
174.15
1000
174150
-1900
SAIL
11-Jan11
174.5
166.75
172.85
1000
172850
-3200
SAIL
12-Jan11
175.5
169.55
174.1
1000
174100
-1950
SAIL
13-Jan11
176.5
167.7
168.9
1000
168900
-7150
SAIL
14-Jan11
165.1
158.2
160.05
1000
160050
-16000
SAIL
17-Jan11
161.25
155.45
156.05
1000
156050
-20000
SAIL
18-Jan11
163.65
158.6
162.9
1000
162900
-13150
SAIL
19-Jan11
171.8
163
169.9
1000
169900
-6150
SAIL
20-Jan11
170
166
169.2
1000
169200
-6850
SAIL
21-Jan11
169.55
167.5
168.1
1000
168100
-7950
SAIL
24-Jan11
168.9
165.85
166.3
1000
166300
-9750
SAIL
25-Jan11
168.55
160.4
161.7
1000
161700
-14350
SAIL
27-Jan11
163.65
158.3
159
1000
159000
-17050
SAIL
28-Jan11
161.15
156.15
159.5
1000
159500
-16550
SAIL
31-Jan11
162.7
156.55
162.1
1000
162100
-13950
SAIL
1-Feb-11
163.4
158.2
161.35
1000
161350
-14700
SAIL
2-Feb-11
163.4
160.5
161.15
1000
161150
-14900
SAIL
3-Feb-11
165.75
159.35
165.1
1000
165100
-10950
SAIL
4-Feb-11
166.05
160.4
161.55
1000
161550
-14500
SAIL
7-Feb-11
162.9
160
160.8
1000
160800
-15250
ANALYSIS:
Enter into short future on 6th Jan at Rs. 176.05
By holding it till 7TH Feb,we may reduce the loss Rs
b.SHORT PUT:
Investment
p/l
EXP.DATE
SYMBOL
DATE
27550
QTY
from
DATE
CLOSE
PRICE
Short put @8
SETTLE NO.OF
PRICE
CTRT
TOTAL VALUE
P/L
to 15250
9250
-31900
24-Feb-11
STK.PRICE
QTY
TOT.VALUE
SAIL
7-Jan-11
180
9.25
9.25
1000
SAIL
10-Jan-11
180
11
11
1000
SAIL
11-Jan-11
180
13
13
1000
SAIL
12-Jan-11
180
13
10.5
1000
SAIL
13-Jan-11
180
15.05
15.05
1000
40
P/L
9250
11000
1750
13000
3750
13000
3750
15050
5800
SAIL
14-Jan-11
180
21.95
21.95
1000
SAIL
17-Jan-11
180
24.05
24.05
1000
SAIL
18-Jan-11
180
20
20
1000
SAIL
19-Jan-11
180
12.5
12.5
1000
SAIL
20-Jan-11
180
12.5
17.2
1000
SAIL
21-Jan-11
180
15
15
1000
SAIL
24-Jan-11
180
16
16
1000
SAIL
25-Jan-11
180
20
20
1000
SAIL
27-Jan-11
180
20.9
20.9
1000
SAIL
28-Jan-11
180
23.8
23.8
1000
SAIL
31-Jan-11
180
23.8
20.35
1000
SAIL
1-Feb-11
180
23.8
20.15
1000
SAIL
2-Feb-11
180
23.8
20.5
1000
SAIL
3-Feb-11
180
23.8
17.05
1000
SAIL
4-Feb-11
180
23.8
19.15
1000
SAIL
7-Feb-11
180
23.8
19.85
1000
21950
12700
24050
14800
20000
10750
12500
3250
12500
3250
15000
5750
16000
6750
20000
10750
20900
11650
23800
14550
23800
14550
23800
14550
23800
14550
23800
14550
23800
14550
23800
14550
ANALYSIS:
Enter into a short thput on 6th Jan at Rs 3.4
ANNEXURE4;
4.RELIANCE:
Investment
p/l
SYMBOL
DATE
DATE
mmmmmmmmmmm
263900
-31637.5
HIGHPRICE
LOW PRICE
RELIANCE
3-Jan-11
1066.5
1052.6
1055.6
250
RELIANCE
4-Jan-11
1079.9
1057.3
1077.1
250
RELIANCE
5-Jan-11
1090
1070
1075.8
250
RELIANCE
6-Jan-11
1091.4
1074.6
1085.6
250
RELIANCE
7-Jan-11
1087.75
1058
1065.4
250
RELIANCE
10-Jan-11
1070.45
1021.2
1033.45
250
RELIANCE
11-Jan-11
1048.7
998.6
1013.75
250
RELIANCE
12-Jan-11
1035.65
1003
1030.8
250
RELIANCE
13-Jan-11
1039.15
1011.1
1015.35
250
RELIANCE
14-Jan-11
1029.8
998
1001.5
250
RELIANCE
17-Jan-11
1008
992.05
997.9
250
RELIANCE
18-Jan-11
1008
990
994.85
250
RELIANCE
19-Jan-11
1005
975
980.15
250
RELIANCE
20-Jan-11
977.6
954.55
969.85
250
RELIANCE
21-Jan-11
992.5
973
986.8
250
RELIANCE
24-Jan-11
995.9
964.1
971.6
250
RELIANCE
25-Jan-11
984.95
956.25
958.5
250
RELIANCE
27-Jan-11
967.4
940
942.7
250
41
TOTALVALUE
263900
269275
268950
271400
266350
258362.5
253437.5
257700
253837.5
250375
249475
248712.5
245037.5
242462.5
246700
242900
239625
235675
P/L
0
5375
5050
7500
2450
-5537.5
-10462.5
-6200
-10062.5
-13525
-14425
-15187.5
-18862.5
-21437.5
-17200
-21000
-24275
-28225
RELIANCE
28-Jan-11
945.9
902
913
250
RELIANCE
31-Jan-11
928.85
903.1
919.3
250
RELIANCE
1-Feb-11
927.7
888.55
895.5
250
RELIANCE
2-Feb-11
927.9
907.3
921.3
250
RELIANCE
3-Feb-11
947.5
915
943.9
250
RELIANCE
4-Feb-11
947.4
913.15
920
250
RELIANCE
7-Feb-11
938.8
914.4
929.05
250
228250
229825
223875
230325
235975
230000
232262.5
-35650
-34075
-40025
-33575
-27925
-33900
-31637.5
ANALYSIS:
rd
As on3
MARCH
the amount
the shares of SAIL was Rs . 192250 by purchasing the
250
number
of shares
at closeinvested
price of in
Rs1055.6
But on 7th Feb the price of the shares of the company
fell down to Rs. 929.05
Thus by selling the shares after holding it till 7th Feb ,the total loss of Rs. 31637.5 was observed.
a.SHORT FUTURE:
HIGHPRICE
LOWPRICE
Investment
255712.5
p/l
-22487.5
EXP.DATE
SYMBOL
DATE
DATE
24-Feb-11
TOTALVALUE
P/L
RELIANCE
11-Jan-11
1060.35
1006
1022.85
250
255712.5
RELIANCE
12-Jan-11
1046.25
1010.65
1042.8
250
260700
4987.5
RELIANCE
13-Jan-11
1049
1019.55
1023.3
250
255825
112.5
RELIANCE
14-Jan-11
1040.9
1005.1
1009
250
252250
-3462.5
RELIANCE
17-Jan-11
1016.6
1000.05
1007.85
250
251962.5
-3750
RELIANCE
18-Jan-11
1017.6
996.6
1005.1
250
251275
-4437.5
RELIANCE
19-Jan-11
1014.4
984
989.55
250
247387.5
RELIANCE
20-Jan-11
985
964.35
980
250
245000
-8325
10712.5
RELIANCE
21-Jan-11
999
981.65
993.95
250
248487.5
-7225
RELIANCE
24-Jan-11
1002.9
972.25
979.85
250
244962.5
-10750
RELIANCE
25-Jan-11
991
965
966.75
250
241687.5
-14025
RELIANCE
27-Jan-11
974
946.25
949.75
250
237437.5
-18275
RELIANCE
28-Jan-11
951.85
908.3
920.55
250
230137.5
-25575
RELIANCE
31-Jan-11
935
908
925.75
250
231437.5
-24275
RELIANCE
1-Feb-11
932.3
895
901.55
250
225387.5
-30325
RELIANCE
2-Feb-11
931
910.1
923.75
250
230937.5
-24775
RELIANCE
3-Feb-11
949.4
917.15
946.45
250
236612.5
-19100
RELIANCE
4-Feb-11
948.4
913.6
919.45
250
229862.5
-25850
42
RELIANCE
7-Feb-11
943.4
914.5
932.9
ANALYSIS:
Enter into short future
on 6th Jan at Rs. 1022.85
By holding it till 7TH Feb,we may reduce the loss Rs 31637.5 from
b.SHORT PUT:
DATE
Investment
233225
250
22487.5
to 22487.5
5025
p/l
15337.5
EXP.DATE
24-Feb-11
Short put @20.1
SYMBOL
DATE
STK.PRICE
CL.PRICE
SET.PRICE
NO.OFCTRT
RELIANCE
11-Jan-11
1020
20.1
40
250
5025
RELIANCE
12-Jan-11
1020
26.3
26.3
250
6575
1550
RELIANCE
13-Jan-11
1020
35
35
250
8750
3725
RELIANCE
14-Jan-11
1020
28.6
28.6
250
7150
2125
RELIANCE
17-Jan-11
1020
45.5
45.5
250
11375
6350
RELIANCE
18-Jan-11
1020
45.5
44.45
250
11375
6350
RELIANCE
19-Jan-11
1020
39
39
250
9750
4725
RELIANCE
20-Jan-11
1020
69.55
69.55
250
17387.5
12362.5
RELIANCE
21-Jan-11
1020
47.45
47.45
18
250
11862.5
6837.5
RELIANCE
24-Jan-11
1020
54
54
250
13500
8475
RELIANCE
25-Jan-11
1020
65.9
65.9
10
250
16475
11450
RELIANCE
27-Jan-11
1020
76.4
76.4
27
250
19100
14075
RELIANCE
28-Jan-11
1020
108.8
108.8
19
250
27200
22175
RELIANCE
31-Jan-11
1020
108.8
99.05
250
27200
22175
RELIANCE
1-Feb-11
1020
125
125
250
31250
26225
RELIANCE
2-Feb-11
1020
96.45
96.45
12
250
24112.5
19087.5
RELIANCE
3-Feb-11
1020
81.45
81.45
250
20362.5
15337.5
RELIANCE
4-Feb-11
1020
81.45
100.2
250
20362.5
15337.5
RELIANCE
7-Feb-11
1020
81.45
91.3
250
20362.5
15337.5
ANALYSIS:
Enter into a short thput on 6th Jan at Rs 20.1
By holding it till 7 Feb ,we can earn the profit of Rs. 15337.5
ANNEXURE 5
5.BHARTI AIRTEL:
DATE
Investment
359350
p/l
-25500
43
QTY
TOT.VALUE
P/L
DATE
HIGHPRICE
LOW PRICE
CLOSE PRICE
QTY
TOTAL VALUE
BHARTIARTL
3-Jan-11
365
354.75
359.35
1000
BHARTIARTL
4-Jan-11
361.85
353.15
356.4
1000
BHARTIARTL
5-Jan-11
356.05
347.55
349
1000
BHARTIARTL
6-Jan-11
355.3
349.15
353.2
1000
BHARTIARTL
7-Jan-11
354.8
334.4
338.5
1000
BHARTIARTL
10-Jan-11
343.95
335.05
339.1
1000
BHARTIARTL
11-Jan-11
346.9
334
338.45
1000
BHARTIARTL
12-Jan-11
351.25
336
349.1
1000
BHARTIARTL
13-Jan-11
354
345.1
346.65
1000
BHARTIARTL
14-Jan-11
351.45
341.25
343.75
1000
BHARTIARTL
17-Jan-11
352
339.65
348.5
1000
BHARTIARTL
18-Jan-11
351.35
343.1
344.4
1000
BHARTIARTL
19-Jan-11
348.4
341.7
344.45
1000
BHARTIARTL
20-Jan-11
343
338
340.3
1000
BHARTIARTL
21-Jan-11
339.95
331
336.05
1000
BHARTIARTL
24-Jan-11
337.9
332.5
333.1
1000
BHARTIARTL
25-Jan-11
340.85
333.1
337.75
1000
BHARTIARTL
27-Jan-11
340
324.25
325.65
1000
BHARTIARTL
28-Jan-11
332.25
322.5
327.25
1000
BHARTIARTL
31-Jan-11
323.65
311
319
1000
BHARTIARTL
1-Feb-11
327.85
310
317.1
1000
BHARTIARTL
2-Feb-11
325.8
304.45
322.8
1000
BHARTIARTL
3-Feb-11
342.45
320.45
339.8
1000
BHARTIARTL
4-Feb-11
343.5
330.5
332.5
1000
BHARTIARTL
7-Feb-11
344.25
332
333.85
1000
359350
356400
349000
353200
338500
339100
338450
349100
346650
343750
348500
344400
344450
340300
336050
333100
337750
325650
327250
319000
317100
322800
339800
332500
333850
P/L
0
-2950
-10350
-6150
-20850
-20250
-20900
-10250
-12700
-15600
-10850
-14950
-14900
-19050
-23300
-26250
-21600
-33700
-32100
-40350
-42250
-36550
-19550
-26850
-25500
ANALYSIS:
As on3rd MARCH
the number
amount of
invested
shares
was Rs . 359350 by
purchasing
the 1000
shares in
at the
close
priceof
of BHARTIARTL
359.35
But on 7th Feb the price of the shares of the company
fell down to Rs. 333.85
th
Thus by selling the shares after holding it till 7 Feb ,the total loss of Rs. 25500 was observed.
a.SHORT FUTURE:
DATE
Investment
353000
p/l
-19250
EXP.DATE
24-Feb-11
Short future @356.35
SYMBOL
LOWPRICE
CLOSEPRICE
BHARTIARTL
DATE
5-Jan-11
HIGHPRICE
358.2
352.1
353
1000
BHARTIARTL
6-Jan-11
358.25
354.9
356.35
1000
BHARTIARTL
7-Jan-11
357.75
338.4
341.05
1000
BHARTIARTL
10-Jan-11
346.8
338.05
342.25
1000
BHARTIARTL
11-Jan-11
349
336.75
341.35
1000
BHARTIARTL
12-Jan-11
353.5
338.1
352.4
1000
BHARTIARTL
13-Jan-11
355.9
347
348.45
1000
BHARTIARTL
14-Jan-11
353.6
344.3
345.4
1000
BHARTIARTL
17-Jan-11
353.35
340.6
350.2
1000
BHARTIARTL
18-Jan-11
352.5
346.4
347.3
1000
44
QTY
TOTAL VALUE
353000
356350
341050
342250
341350
352400
348450
345400
350200
347300
P/L
0
3350
-11950
-10750
-11650
-600
-4550
-7600
-2800
-5700
BHARTIARTL
19-Jan-11
350
344.8
346.3
1000
BHARTIARTL
20-Jan-11
345
339.95
342.8
1000
BHARTIARTL
21-Jan-11
340
334
338.8
1000
BHARTIARTL
24-Jan-11
339.7
335.4
336
1000
BHARTIARTL
25-Jan-11
342.8
335.8
338.6
1000
BHARTIARTL
27-Jan-11
340.95
326.95
328.1
1000
BHARTIARTL
28-Jan-11
333.4
323.75
328.3
1000
BHARTIARTL
31-Jan-11
323.75
313.1
320.15
1000
BHARTIARTL
1-Feb-11
328.8
309.35
315.55
1000
BHARTIARTL
2-Feb-11
326.95
305.15
322.7
1000
BHARTIARTL
3-Feb-11
341.8
321.55
339.55
1000
BHARTIARTL
4-Feb-11
343.5
330.05
331.75
1000
BHARTIARTL
7-Feb-11
341.95
332.2
333.75
1000
ANALYSIS:
Enter into short future
on 6th Jan at Rs. 356.35
By holding it till 7TH Feb,we may reduce the loss Rs 25500 from
346300
342800
338800
336000
338600
328100
328300
320150
315550
322700
339550
331750
333750
-6700
-10200
-14200
-17000
-14400
-24900
-24700
-32850
-37450
-30300
-13450
-21250
-19250
to 19250
b..SHORT PUT:
DATE
Investment
50000
p/l
10000
EXP.DATE
24-Feb-11
Short put @50
SYMBOL
DATE
STK.PRICE
CLOSEPRICE
SETTLEPRICE
NO.OFCTRT
QTY
TOT.VALUE
P/L
BHARTIARTL
5-Jan-11
400
50
50
1000
50000
BHARTIARTL
6-Jan-11
400
50
46.85
1000
50000
BHARTIARTL
7-Jan-11
400
60
60
1000
60000
10000
BHARTIARTL
10-Jan-11
400
60
59.45
1000
60000
10000
BHARTIARTL
11-Jan-11
400
60
59.75
1000
60000
10000
BHARTIARTL
12-Jan-11
400
60
51.15
1000
60000
10000
BHARTIARTL
13-Jan-11
400
60
52.8
1000
60000
10000
BHARTIARTL
14-Jan-11
400
60
54.95
1000
60000
10000
BHARTIARTL
17-Jan-11
400
60
50.65
1000
60000
10000
BHARTIARTL
18-Jan-11
400
60
54.05
1000
60000
10000
BHARTIARTL
19-Jan-11
400
60
53.75
1000
60000
10000
BHARTIARTL
20-Jan-11
400
60
57.45
1000
60000
10000
BHARTIARTL
21-Jan-11
400
60
61.35
1000
60000
10000
BHARTIARTL
24-Jan-11
400
60
64.25
1000
60000
10000
BHARTIARTL
25-Jan-11
400
60
60.1
1000
60000
10000
BHARTIARTL
27-Jan-11
400
60
72.15
1000
60000
10000
BHARTIARTL
28-Jan-11
400
60
70.65
1000
60000
10000
45
BHARTIARTL
31-Jan-11
400
60
78.95
1000
60000
10000
BHARTIARTL
1-Feb-11
400
60
80.9
1000
60000
10000
BHARTIARTL
2-Feb-11
400
60
75.3
1000
60000
10000
BHARTIARTL
3-Feb-11
400
60
59.2
1000
60000
10000
BHARTIARTL
4-Feb-11
400
60
66.15
1000
60000
10000
BHARTIARTL
7-Feb-11
400
60
64.9
1000
60000
10000
ANALYSIS:
Enter into a short put on 6th Jan at Rs 50
By holding it till 7th Feb ,we can earn the profit of Rs. 10000
ANNEXURE 6:
6.TATA STEEL:
SYMBOL
Investment
352025
p/l
-31825
DATE
HIGHPRICE
DATE
LOW
PRICE
TOTAL
VALUE
P/L
TATASTEEL
3-Jan-11
707.5
685.1
704.05
500
352025
TATASTEEL
4-Jan-11
713.9
693.25
694.7
500
347350
-4675
TATASTEEL
5-Jan-11
696.65
677.25
680.95
500
340475
-11550
TATASTEEL
6-Jan-11
690.85
681.5
683.3
500
341650
-10375
TATASTEEL
7-Jan-11
687.95
656.15
661.25
500
330625
-21400
TATASTEEL
10-Jan-11
665.7
645
650.7
500
325350
-26675
TATASTEEL
11-Jan-11
660.4
640.75
646.55
500
323275
-28750
TATASTEEL
12-Jan-11
658.6
626.25
648.9
500
324450
-27575
TATASTEEL
13-Jan-11
656
635
637.55
500
318775
-33250
TATASTEEL
14-Jan-11
636.6
617.5
622.45
500
311225
-40800
TATASTEEL
17-Jan-11
628
613.2
625.65
500
312825
-39200
TATASTEEL
18-Jan-11
638.8
627
632.6
500
316300
-35725
TATASTEEL
19-Jan-11
644.5
633.05
639.6
500
319800
-32225
TATASTEEL
20-Jan-11
643.25
630.6
634.2
500
317100
-34925
TATASTEEL
21-Jan-11
635
627
629.55
500
314775
-37250
TATASTEEL
24-Jan-11
652.3
625
649.25
500
324625
-27400
TATASTEEL
25-Jan-11
664.5
650.3
655.35
500
327675
-24350
TATASTEEL
27-Jan-11
660.4
647.3
650.1
500
325050
-26975
TATASTEEL
28-Jan-11
654.5
630.2
637.45
500
318725
-33300
TATASTEEL
31-Jan-11
641.95
618
639.7
500
319850
-32175
TATASTEEL
1-Feb-11
642.8
627.1
631.75
500
315875
-36150
TATASTEEL
2-Feb-11
634.95
615.8
626.25
500
313125
-38900
TATASTEEL
3-Feb-11
640.9
625.7
638.1
500
319050
-32975
TATASTEEL
4-Feb-11
652
632
635.9
500
317950
-34075
TATASTEEL
7-Feb-11
645.5
634.1
640.4
500
320200
-31825
ANALYSIS:
rd
As on3
MARCH ofthe
amount
invested
shares of TATASTEEL was Rs . 352025 by purchasing
the
500 number
shares
at close
priceinofthe
Rs.704.1
But on 7th Feb the price of the shares of the company
fell down to Rs. 640.4
Thus by selling the shares after holding it till 7th Feb ,the total loss of Rs. 31825was observed
a.SHORT FUTURE:
DATE
Investment
343500
46
p/l
EXP.DATE
SYMBOL
DATE
-22700
24-Feb-11
HIGHPRICE
LOW
PRICE
TOTAL
VALUE
P/L
TATASTEEL
5-Jan-11
698.7
683.2
687
500
343500
TATASTEEL
6-Jan-11
695.2
686.3
689
500
344500
1000
TATASTEEL
7-Jan-11
692.05
659.05
662.5
500
331250
-12250
TATASTEEL
10-Jan-11
667.5
647.9
652.1
500
326050
-17450
TATASTEEL
11-Jan-11
663
637.3
645.55
500
322775
-20725
TATASTEEL
12-Jan-11
652.05
620.2
644.05
500
322025
-21475
TATASTEEL
13-Jan-11
650
629.5
631.65
500
315825
-27675
TATASTEEL
14-Jan-11
633.85
612
618
500
309000
-34500
TATASTEEL
17-Jan-11
621.5
609.15
619.75
500
309875
-33625
TATASTEEL
18-Jan-11
632.5
621.3
629.85
500
314925
-28575
TATASTEEL
19-Jan-11
639.35
630.55
634.85
500
317425
-26075
TATASTEEL
20-Jan-11
637.8
625.25
630.95
500
315475
-28025
TATASTEEL
21-Jan-11
631.2
622.05
624.1
500
312050
-31450
TATASTEEL
24-Jan-11
645.4
619.25
643.4
500
321700
-21800
TATASTEEL
25-Jan-11
655.5
641.7
645.05
500
322525
-20975
TATASTEEL
27-Jan-11
651
640.1
642.3
500
321150
-22350
TATASTEEL
28-Jan-11
649.8
622.55
628.95
500
314475
-29025
TATASTEEL
31-Jan-11
639.5
616
637.15
500
318575
-24925
TATASTEEL
1-Feb-11
642.5
627.2
630.6
500
315300
-28200
TATASTEEL
2-Feb-11
637.7
617.95
629.5
500
314750
-28750
TATASTEEL
3-Feb-11
643.7
628.5
641.3
500
320650
-22850
TATASTEEL
4-Feb-11
655.3
634.65
637.55
500
318775
-24725
TATASTEEL
7-Feb-11
646.8
635.65
641.6
500
320800
-22700
ANALYSIS:
Enter into short future
on 6th Jan at Rs. 687
By holding it till 7TH Feb,we may reduce the loss Rs 31825 from to 22700
b.SHORT PUT:
Investment
DATE
CLOSE
PRICE
10125
p/l
EXP.DATE
SYMBOL
TATASTEEL
DATE
5-Jan-11
24-Feb-11
STK.PRICE
660
20.25
20.25
47
QTY
1
500
TOT.VALUE
10125
P/L
0
TATASTEEL
6-Jan-11
660
20.25
21.25
500
10125
TATASTEEL
7-Jan-11
660
27
27
500
13500
3375
TATASTEEL
10-Jan-11
660
29.2
29.2
500
14600
4475
TATASTEEL
11-Jan-11
660
30
30
10
500
15000
4875
TATASTEEL
12-Jan-11
660
36.85
36.85
500
18425
8300
TATASTEEL
13-Jan-11
660
44.85
44.85
500
22425
12300
TATASTEEL
14-Jan-11
660
47.95
47.95
500
23975
13850
TATASTEEL
17-Jan-11
660
56
56
500
28000
17875
TATASTEEL
18-Jan-11
660
56
39.9
500
28000
17875
TATASTEEL
19-Jan-11
660
35.8
35.8
16
500
17900
7775
TATASTEEL
20-Jan-11
660
40.5
40.5
13
500
20250
10125
TATASTEEL
21-Jan-11
660
43
43
500
21500
11375
TATASTEEL
24-Jan-11
660
31.7
31.7
119
500
15850
5725
TATASTEEL
25-Jan-11
660
29.2
29.2
145
500
14600
4475
TATASTEEL
27-Jan-11
660
29.25
29.25
112
500
14625
4500
TATASTEEL
28-Jan-11
660
39.25
39.25
77
500
19625
9500
TATASTEEL
31-Jan-11
660
33.75
33.75
25
500
16875
6750
TATASTEEL
1-Feb-11
660
38.5
38.5
23
500
19250
9125
TATASTEEL
2-Feb-11
660
38.8
38.8
33
500
19400
9275
TATASTEEL
3-Feb-11
660
30.25
30.25
66
500
15125
5000
TATASTEEL
4-Feb-11
660
30.95
30.95
148
500
15475
5350
TATASTEEL
7-Feb-11
660
28.35
28.35
52
500
14175
4050
ANALYSIS:
Enter into a short thput on 6th Jan at Rs 20.25
By holding it till 7 Feb ,we can earn the profit of Rs. 4050
ANNEXURE 7:
7.INFOSYS TECH:
DATE
Investment
p/l
432293.75
-46363
Buy Stock @3458.4
SYMBOL
DATE
HIGHPRICE
LOW PRICE
CLOSE PRICE
QTY
TOTAL VALUE
P/L
INFOSYSTCH
3-Jan-11
3469.7
3427.7
3458.4
125
432293.75
INFOSYSTCH
4-Jan-11
3499
3457
3481.5
125
435181.25
2887.5
INFOSYSTCH
5-Jan-11
3477
3445.1
3459.6
125
432450
156.25
INFOSYSTCH
6-Jan-11
3493
3444.1
3478.2
125
434768.75
2475
INFOSYSTCH
7-Jan-11
3495
3356.35
3370.8
125
421343.75
-10950
INFOSYSTCH
10-Jan-11
3443.15
3352
3395.8
125
424468.75
-7825
INFOSYSTCH
11-Jan-11
3423.4
3288.1
3325.7
125
415712.5
-16581
INFOSYSTCH
12-Jan-11
3390
3318.2
3377.3
125
422162.5
-10131
48
INFOSYSTCH
13-Jan-11
3299
3195
3205.2
125
400650
-31644
INFOSYSTCH
14-Jan-11
3277.9
3185
3204.3
125
400537.5
-31756
INFOSYSTCH
17-Jan-11
3281.7
3191.25
3268.8
125
408600
-23694
INFOSYSTCH
18-Jan-11
3335.7
3250
3323
125
415375
-16919
INFOSYSTCH
19-Jan-11
3314
3235.8
3249.6
125
406200
-26094
INFOSYSTCH
20-Jan-11
3307.4
3218.1
3295.9
125
411987.5
-20306
INFOSYSTCH
21-Jan-11
3278
3231
3243.9
125
405481.25
-26813
INFOSYSTCH
24-Jan-11
3290
3227.3
3284.7
125
410581.25
-21713
INFOSYSTCH
25-Jan-11
3304.85
3236.05
3259.7
125
407456.25
-24838
INFOSYSTCH
27-Jan-11
3269
3185.5
3196.9
125
399612.5
-32681
INFOSYSTCH
28-Jan-11
3268.55
3140.65
3168.2
125
396018.75
-36275
INFOSYSTCH
31-Jan-11
3138.5
3086.2
3117.7
125
389712.5
-42581
INFOSYSTCH
1-Feb-11
3128.4
3043.1
3089.2
125
386150
-46144
INFOSYSTCH
2-Feb-11
3164
3065
3089.3
125
386156.25
-46138
INFOSYSTCH
3-Feb-11
3153
3086.2
3117.6
125
389700
-42594
INFOSYSTCH
4-Feb-11
3123.7
3026.4
3047.9
125
380987.5
-51306
INFOSYSTCH
7-Feb-11
3113.9
3061
3087.5
125
385931.25
-46363
ANALYSIS:
rd
As on3
MARCH ofthe
amount
invested
the
125 number
shares
at close
priceinofthe
Rs.shares
3458.4 INFOSYSTCH was Rs . 432293.75 by purchasing
But on 7th Feb the price of the shares of the company
fell down to Rs3087.5
Thus by selling the shares after holding it till 7th Feb ,the total loss of Rs. 3087.5 was observed
a.SHORT FUTURE:
DATE
Investment
425300
p/l
-39519
EXP.DATE
24-Feb-11
Short future @3402.4
SYMBOL
DATE
HIGHPRICE
LOW PRICE
CLOSE PRICE
3520.35
3390.9
3402.4
125
425300
10-Jan-11
3459
3371.5
3409.8
125
426225
925
INFOSYSTCH
11-Jan-11
3436.85
3315
3355.7
125
419462.5
-5837.5
INFOSYSTCH
12-Jan-11
3407.4
3338.1
3389.8
125
423725
-1575
INFOSYSTCH
13-Jan-11
3320
3222
3230.1
125
403762.5
-21538
INFOSYSTCH
14-Jan-11
3303.85
3211.6
3231
125
403875
-21425
INFOSYSTCH
17-Jan-11
3294.95
3218.15
3285.3
125
410662.5
-14638
INFOSYSTCH
18-Jan-11
3346.75
3283.45
3338.1
125
417262.5
-8037.5
INFOSYSTCH
19-Jan-11
3337.05
3250
3262.7
125
407831.25
-17469
INFOSYSTCH
20-Jan-11
3318.5
3238.55
3305.6
125
413193.75
-12106
INFOSYSTCH
21-Jan-11
3289.35
3242
3261.2
125
407643.75
-17656
INFOSYSTCH
24-Jan-11
3299
3237
3287.3
125
410912.5
-14388
INFOSYSTCH
25-Jan-11
3308
3250
3261.2
125
407650
-17650
INFOSYSTCH
27-Jan-11
3250
3202
3211.7
125
401462.5
-23838
INFOSYSTCH
28-Jan-11
3271.7
3152
3187.4
125
398418.75
-26881
INFOSYSTCH
31-Jan-11
3156.45
3101.2
3133.8
125
391718.75
-33581
INFOSYSTCH
1-Feb-11
3141.4
3056
3102.4
125
387800
-37500
INFOSYSTCH
2-Feb-11
3171.7
3081.2
3101.3
125
387662.5
-37638
INFOSYSTCH
3-Feb-11
3163.5
3097
3127.7
125
390956.25
-34344
INFOSYSTCH
4-Feb-11
3131.4
3028
3050.9
125
381362.5
-43938
INFOSYSTCH
7-Jan-11
INFOSYSTCH
49
QTY
TOTAL VALUE
P/L
INFOSYSTCH
7-Feb-11
3114.95
3064.9
3086.3
ANALYSIS:
Enter into short future
on 6th Jan at Rs. 3402.4
By holding it till 7TH Feb,we may reduce the loss Rs
b.SHORT PUT:
Investment
p/l
EXP.DATE
DATE
46363
125
from
385781.25
-39519
to 39519
4687.5
22893.75
24-Feb-11
Short put @37.5
SYMBOL
DATE
STK.PRICE
CLOSEPRICE
SETTLE PRICE
NO.OF
CTRT
QTY
TOT.VALUE
P/L
INFOSYSTCH
7-Jan-11
3250
37.5
51.2
125
4687.5
INFOSYSTCH
10-Jan-11
3250
64.95
64.95
125
8118.75
3431.25
INFOSYSTCH
11-Jan-11
3250
81
81
125
10125
5437.5
INFOSYSTCH
12-Jan-11
3250
53.4
53.4
125
6675
1987.5
INFOSYSTCH
13-Jan-11
3250
105
105
125
13125
8437.5
INFOSYSTCH
14-Jan-11
3250
105
149.45
125
13125
8437.5
INFOSYSTCH
17-Jan-11
3250
105
117.05
125
13125
8437.5
INFOSYSTCH
18-Jan-11
3250
54
54
125
6750
2062.5
INFOSYSTCH
19-Jan-11
3250
75
75
125
9375
4687.5
INFOSYSTCH
20-Jan-11
3250
75
101.95
125
9375
4687.5
INFOSYSTCH
21-Jan-11
3250
82
82
125
10250
5562.5
INFOSYSTCH
24-Jan-11
3250
62
62
125
7750
3062.5
INFOSYSTCH
25-Jan-11
3250
74.6
74.6
44
125
9325
4637.5
INFOSYSTCH
27-Jan-11
3250
92
92
11
125
11500
6812.5
INFOSYSTCH
28-Jan-11
3250
115
115
25
125
14375
9687.5
INFOSYSTCH
31-Jan-11
3250
115
170.75
125
14375
9687.5
INFOSYSTCH
1-Feb-11
3250
190
190
125
23750
19062.5
INFOSYSTCH
2-Feb-11
3250
190
182.95
125
23750
19062.5
INFOSYSTCH
3-Feb-11
3250
190
160.35
125
23750
19062.5
INFOSYSTCH
4-Feb-11
3250
220.65
220.65
125
27581.25
22893.75
INFOSYSTCH
7-Feb-11
3250
220.65
178.35
125
27581.25
22893.75
ANALYSIS:
Enter into a short thput on 6th Jan at Rs 37.5
By holding it till 7 Feb ,we can earn the profit of Rs. 22893.75
ANNEXURE 8.:
8.TATA MOTORS:
DATE
Investment
654225
p/l
-81050
50
DATE
HIGHPRICE
LOW PRICE
CLOSE PRICE
QTY
TOTAL VALUE
P/L
TATAMOTORS
3-Jan-11
1335
1301.2
1308.45
500
654225
TATAMOTORS
4-Jan-11
1320.6
1285.05
1298.4
500
649200
-5025
TATAMOTORS
5-Jan-11
1309.9
1276
1282.8
500
641400
-12825
TATAMOTORS
6-Jan-11
1300.9
1248.35
1261
500
630500
-23725
TATAMOTORS
7-Jan-11
1263.35
1160
1190.2
500
595100
-59125
TATAMOTORS
10-Jan-11
1206.9
1157.4
1176.7
500
588350
-65875
TATAMOTORS
11-Jan-11
1198.9
1140.55
1158.05
500
579025
-75200
TATAMOTORS
12-Jan-11
1223.1
1176
1218
500
609000
-45225
TATAMOTORS
13-Jan-11
1246.95
1212
1236.7
500
618350
-35875
TATAMOTORS
14-Jan-11
1225
1172
1182.4
500
591200
-63025
TATAMOTORS
17-Jan-11
1188
1155.5
1178.85
500
589425
-64800
TATAMOTORS
18-Jan-11
1208.6
1182
1199.55
500
599775
-54450
TATAMOTORS
19-Jan-11
1207.9
1183.3
1192.75
500
596375
-57850
TATAMOTORS
20-Jan-11
1202
1162.15
1194.7
500
597350
-56875
TATAMOTORS
21-Jan-11
1204
1172.35
1187.4
500
593700
-60525
TATAMOTORS
24-Jan-11
1197.8
1175.1
1188.3
500
594150
-60075
TATAMOTORS
25-Jan-11
1198.8
1159.9
1166
500
583000
-71225
TATAMOTORS
27-Jan-11
1199.5
1171
1195.85
500
597925
-56300
TATAMOTORS
28-Jan-11
1189.9
1122
1150.3
500
575150
-79075
TATAMOTORS
31-Jan-11
1159
1112.1
1147.05
500
573525
-80700
TATAMOTORS
1-Feb-11
1151.45
1063
1069.05
500
534525
-119700
TATAMOTORS
2-Feb-11
1128.9
1077.3
1114.25
500
557125
-97100
TATAMOTORS
3-Feb-11
1164.5
1094
1156.8
500
578400
-75825
TATAMOTORS
4-Feb-11
1189.95
1140
1150.85
500
575425
-78800
TATAMOTORS
7-Feb-11
1159.85
1110.8
1146.35
500
573175
-81050
ANALYSIS:
rd
As on3
MARCH
the amount
the
shares TATAMOTORS was Rs 654225 by purchasing the
500
number
of shares
at closeinvested
price of in
Rs.
1308.45
But on 7th Feb the price of the shares of the company
fell down to Rs 1146.35
Thus by selling the shares after holding it till 7th Feb ,the total loss of Rs. 81050 was observed
a.SHORT FUTURE:
DATE
Investment
p/l
EXP.DATE
630550
-62775
24-Feb-11
Short future @1261.1
SYMBOL
TATAMOTORS
DATE
6-Jan-11
HIGHPRICE
1299.05
LOW
PRICE
1241.15
TATAMOTORS
7-Jan-11
1262
1185.5
TATAMOTORS
10-Jan-11
1204.9
TATAMOTORS
11-Jan-11
TATAMOTORS
500
TOTAL VALUE
630550
1196.9
500
598450
-32100
1160
1175.9
500
587950
-42600
1198.75
1139.95
1157.85
500
578925
-51625
12-Jan-11
1216.5
1172.75
1213.15
500
606575
-23975
TATAMOTORS
13-Jan-11
1232
1197
1220.95
500
610475
-20075
TATAMOTORS
14-Jan-11
1220
1166.15
1172.45
500
586225
-44325
CLOSE PRICE
1261.1
51
QTY
P/L
0
TATAMOTORS
17-Jan-11
1177.05
1146.85
1168.3
500
584150
-46400
TATAMOTORS
18-Jan-11
1198
1176.25
1193.7
500
596850
-33700
TATAMOTORS
19-Jan-11
1205
1170.25
1179.25
500
589625
-40925
TATAMOTORS
20-Jan-11
1196
1154.1
1189.8
500
594900
-35650
TATAMOTORS
21-Jan-11
1197.1
1167.45
1184.4
500
592200
-38350
TATAMOTORS
24-Jan-11
1190
1169.5
1180.75
500
590375
-40175
TATAMOTORS
25-Jan-11
1215
1147
1153
500
576500
-54050
TATAMOTORS
27-Jan-11
1187.2
1163.5
1180.05
500
590025
-40525
TATAMOTORS
28-Jan-11
1179.6
1115
1138.75
500
569375
-61175
TATAMOTORS
31-Jan-11
1154.6
1106.7
1145.8
500
572900
-57650
TATAMOTORS
1-Feb-11
1146
1064.1
1069.8
500
534900
-95650
TATAMOTORS
2-Feb-11
1122.8
1077.35
1104.15
500
552075
-78475
TATAMOTORS
3-Feb-11
1161
1088.65
1153.65
500
576825
-53725
TATAMOTORS
4-Feb-11
1181.55
1128
1136.85
500
568425
-62125
TATAMOTORS
7-Feb-11
1151.85
1098.65
1135.55
500
567775
-62775
ANALYSIS:
Enter into short future
on 6th Jan at Rs. 1261.1
By holding it till 7TH Feb,we may reduce the loss Rs
b.SHORT PUT:
Investment
DATE
81050
from
to 62775
9000
p/l
EXP.DATE
24-Feb-11
Short put @18
SYMBOL
DATE
STK.PRICE
CLS PRICE
SET. PRICE
NO.OF CTRT
QTY
TOT.VAL
P/L
TATAMOTORS
6-Jan-11
1150
18
18
500
9000
TATAMOTORS
7-Jan-11
1150
40
40
500
20000
11000
TATAMOTORS
10-Jan-11
1150
44.1
44.1
500
22050
13050
TATAMOTORS
11-Jan-11
1150
43.95
43.95
500
21975
12975
TATAMOTORS
12-Jan-11
1150
43.95
43.55
500
21775
12775
TATAMOTORS
13-Jan-11
1150
32.25
32.25
500
16125
7125
TATAMOTORS
14-Jan-11
1150
50
50
500
25000
16000
TATAMOTORS
17-Jan-11
1150
45.95
45.95
500
22975
13975
TATAMOTORS
18-Jan-11
1150
35
35
86
500
17500
8500
TATAMOTORS
19-Jan-11
1150
41.95
41.95
14
500
20975
11975
TATAMOTORS
20-Jan-11
1150
35.65
35.65
20
500
17825
8825
TATAMOTORS
21-Jan-11
1150
35.2
35.2
37
500
17600
8600
TATAMOTORS
24-Jan-11
1150
35.25
35.25
15
500
17625
8625
TATAMOTORS
25-Jan-11
1150
45.05
45.05
93
500
22525
13525
TATAMOTORS
27-Jan-11
1150
32.05
32.05
424
500
16025
7025
TATAMOTORS
28-Jan-11
1150
51.6
51.6
656
500
25800
16800
TATAMOTORS
31-Jan-11
1150
52.8
52.8
198
500
26400
17400
TATAMOTORS
1-Feb-11
1150
102.65
102.65
268
500
51325
42325
TATAMOTORS
2-Feb-11
1150
75.1
75.1
115
500
37550
28550
52
TATAMOTORS
3-Feb-11
1150
54.45
54.45
782
500
27225
18225
TATAMOTORS
4-Feb-11
1150
62.05
62.05
1363
500
31025
22025
TATAMOTORS
7-Feb-11
1150
62.25
62.25
553
500
31125
22125
ANALYSIS:
Enter into a short thput on 6th Jan at Rs 18
By holding it till 7 Feb ,we can earn the profit of Rs. 22125
ANNEXURE 9:
9.RELIANCE CAPITAL:
SYMBOL
Investment
341250
p/l
-94325
DATE
RELCAPITAL
3-Jan-11
RELCAPITAL
4-Jan-11
RELCAPITAL
5-Jan-11
RELCAPITAL
6-Jan-11
RELCAPITAL
7-Jan-11
RELCAPITAL
10-Jan-11
RELCAPITAL
11-Jan-11
RELCAPITAL
RELCAPITAL
HIGHPRICE
687.5
DATE
KKKKKKKKKKKKKKK
LOW
PRICE
TOTAL VALUE
P/L
671.35
682.5
500
341250
687
667
677.1
500
338550
-2700
680.05
654.05
656.1
500
328050
-13200
665
654.05
659.9
500
329950
-11300
661.85
630
633.8
500
316900
-24350
641.9
606.6
612.05
500
306025
-35225
622.8
595
607.9
500
303950
-37300
12-Jan-11
631.95
600.5
629.55
500
314775
-26475
13-Jan-11
636.7
616.2
621.65
500
310825
-30425
RELCAPITAL
14-Jan-11
632.9
600.05
613.2
500
306600
-34650
RELCAPITAL
17-Jan-11
600
566.6
574.05
500
287025
-54225
RELCAPITAL
18-Jan-11
587.85
568.4
579.45
500
289725
-51525
RELCAPITAL
19-Jan-11
589
576
581.35
500
290675
-50575
RELCAPITAL
20-Jan-11
588.9
570
585.25
500
292625
-48625
RELCAPITAL
21-Jan-11
594.9
582
586.65
500
293325
-47925
RELCAPITAL
24-Jan-11
589.9
578.85
583.4
500
291700
-49550
RELCAPITAL
25-Jan-11
587.9
576.75
579.9
500
289950
-51300
RELCAPITAL
27-Jan-11
585.05
554.55
558.9
500
279450
-61800
RELCAPITAL
28-Jan-11
561
527.25
536.3
500
268150
-73100
RELCAPITAL
31-Jan-11
534
517.5
523.7
500
261850
-79400
RELCAPITAL
1-Feb-11
528.65
497.6
501.5
500
250750
-90500
RELCAPITAL
2-Feb-11
509.8
491
496.05
500
248025
-93225
RELCAPITAL
3-Feb-11
508.85
489.3
504.65
500
252325
-88925
RELCAPITAL
4-Feb-11
515.95
490
493.1
500
246550
-94700
RELCAPITAL
7-Feb-11
502.8
484.1
493.85
500
246925
-94325
ANALYSIS:
rd
As on3
MARCH
the amount
the
shares RELCAPITAL was Rs 94325 by purchasing the
500
number
of shares
at closeinvested
price of in
Rs.
682.5
But on 7th Feb the price of the shares of the company
fell down to Rs . 493.85
Thus by selling the shares after holding it till 7th Feb ,the total loss of Rs. 94325 was observed
a.SHORT FUTURE:
DATE
Investment
p/l
EXP.DATE
HHHHHHHHHHHHHHHH
331725
-83725
24-Feb-11
Short future @665.65
SYMBOL
DATE
HIGHPRICE
LOW
PRICE
CLOSE PRICE
53
QTY
TOTAL VALUE
P/L
RELCAPITAL
6-Jan-11
671.6
661.45
665.65
500
332825
1100
RELCAPITAL
7-Jan-11
665.4
635.65
639.9
500
319950
-11775
RELCAPITAL
10-Jan-11
646
613.75
616.45
500
308225
-23500
RELCAPITAL
11-Jan-11
626.8
600
610.5
500
305250
-26475
RELCAPITAL
12-Jan-11
635.4
603.65
633.65
500
316825
-14900
RELCAPITAL
13-Jan-11
640
620.5
625.2
500
312600
-19125
RELCAPITAL
14-Jan-11
636.5
605.1
616.25
500
308125
-23600
RELCAPITAL
17-Jan-11
605
570
576.1
500
288050
-43675
RELCAPITAL
18-Jan-11
590
571.95
582.95
500
291475
-40250
RELCAPITAL
19-Jan-11
592.65
578.85
584.7
500
292350
-39375
RELCAPITAL
20-Jan-11
592
578.15
589.35
500
294675
-37050
RELCAPITAL
21-Jan-11
599.2
586.5
591.8
500
295900
-35825
RELCAPITAL
24-Jan-11
595.5
583.85
588.45
500
294225
-37500
RELCAPITAL
25-Jan-11
592
581.4
583.5
500
291750
-39975
RELCAPITAL
27-Jan-11
586.3
559.65
563.95
500
281975
-49750
RELCAPITAL
28-Jan-11
562.95
532
540.6
500
270300
-61425
RELCAPITAL
31-Jan-11
536.7
520.35
527.25
500
263625
-68100
RELCAPITAL
1-Feb-11
530.95
501.3
504.6
500
252300
-79425
RELCAPITAL
2-Feb-11
511.95
487.9
499.3
500
249650
-82075
RELCAPITAL
3-Feb-11
512
491.6
508
500
254000
-77725
RELCAPITAL
4-Feb-11
519.5
491.1
494.95
500
247475
-84250
RELCAPITAL
7-Feb-11
504.95
485.6
496
500
248000
-83725
ANALYSIS:
Enter into short future
on 6th Jan at Rs. 665.65
By holding it till 7TH Feb,we may reduce the loss Rs
from
94325
to 83725
b.SHORT PUT:
Investment
7500
p/l
EXP.DATE
24-Feb-11
Short put @15
SYMBOL
DATE
STK.PRICE
CLS PRICE
SET.PRICE
NO.OF CTRT
QTY
TOT.VALUE
P/L
RELCAPITAL
5-Jan-11
620
15
15
500
7500
RELCAPITAL
6-Jan-11
620
15
16.7
500
7500
RELCAPITAL
7-Jan-11
620
15
27.85
500
7500
RELCAPITAL
10-Jan-11
620
24.85
24.85
500
12425
4925
RELCAPITAL
11-Jan-11
620
24.85
38.5
500
12425
4925
RELCAPITAL
12-Jan-11
620
24.85
30
500
12425
4925
RELCAPITAL
13-Jan-11
620
24.85
32.2
500
12425
4925
RELCAPITAL
14-Jan-11
620
31.9
31.9
500
15950
8450
54
RELCAPITAL
17-Jan-11
620
31.9
62.5
500
15950
8450
RELCAPITAL
18-Jan-11
620
31.9
57.85
500
15950
8450
RELCAPITAL
19-Jan-11
620
31.9
55.2
500
15950
8450
RELCAPITAL
20-Jan-11
620
31.9
51.5
500
15950
8450
RELCAPITAL
21-Jan-11
620
40.55
40.55
500
20275
12775
RELCAPITAL
24-Jan-11
620
45.5
45.5
500
22750
15250
RELCAPITAL
25-Jan-11
620
45.35
45.35
500
22675
15175
RELCAPITAL
27-Jan-11
620
51.5
51.5
500
25750
18250
RELCAPITAL
28-Jan-11
620
51.5
85.55
500
25750
18250
RELCAPITAL
31-Jan-11
620
51.5
95.95
500
25750
18250
RELCAPITAL
1-Feb-11
620
51.5
116.85
500
25750
18250
RELCAPITAL
2-Feb-11
620
51.5
121.85
500
25750
18250
RELCAPITAL
3-Feb-11
620
51.5
113.6
500
25750
18250
RELCAPITAL
4-Feb-11
620
51.5
124.7
500
25750
18250
RELCAPITAL
7-Feb-11
620
51.5
124.1
500
25750
18250
ANALYSIS:
Enter into a short thput on 6th Jan at Rs 15
By holding it till 7 Feb ,we can earn the profit of Rs. 18250
ANNEXURE 10:
10.HINDUSTAN UNILEVER:
DATE
Investment
p/l
DDDDDDDDDDDDDDF
313150
-38800
Buy Stock @313.15
SYMBOL
DATE
HIGHPRICE
LOWPRICE
CLOSE PRICE
QTY
TOTAL VALUE
P/L
HINDUNILVR
3-Jan-11
315.9
310
313.15
1000
313150
HINDUNILVR
4-Jan-11
329.9
313.5
320.9
1000
320900
7750
HINDUNILVR
5-Jan-11
327.35
317.25
325.7
1000
325700
12550
HINDUNILVR
6-Jan-11
328.8
312.4
320.75
1000
320750
7600
HINDUNILVR
7-Jan-11
322.9
310.6
313.05
1000
313050
-100
HINDUNILVR
10-Jan-11
317.65
306.5
309
1000
309000
-4150
HINDUNILVR
11-Jan-11
312.5
303.3
307.95
1000
307950
-5200
HINDUNILVR
12-Jan-11
310.5
301.6
304.9
1000
304900
-8250
HINDUNILVR
13-Jan-11
307.15
300.25
302.2
1000
302200
-10950
HINDUNILVR
14-Jan-11
313.2
301.55
302.55
1000
302550
-10600
HINDUNILVR
17-Jan-11
305.5
300
301.65
1000
301650
-11500
HINDUNILVR
18-Jan-11
304.8
300.5
301.85
1000
301850
-11300
HINDUNILVR
19-Jan-11
303.75
298.45
299.65
1000
299650
-13500
HINDUNILVR
20-Jan-11
301
296.35
299.9
1000
299900
-13250
HINDUNILVR
21-Jan-11
300.95
297
298.2
1000
298200
-14950
HINDUNILVR
24-Jan-11
302
296
297.95
1000
297950
-15200
HINDUNILVR
25-Jan-11
303
280.55
281.9
1000
281900
-31250
HINDUNILVR
27-Jan-11
283
270
270.7
1000
270700
-42450
HINDUNILVR
28-Jan-11
275
267
271.95
1000
271950
-41200
HINDUNILVR
31-Jan-11
276.95
266.4
271.15
1000
271150
-42000
HINDUNILVR
1-Feb-11
274
267
269.65
1000
269650
-43500
55
HINDUNILVR
2-Feb-11
276.55
269.1
274.6
1000
274600
-38550
HINDUNILVR
3-Feb-11
282.2
272.5
278.95
1000
278950
-34200
HINDUNILVR
4-Feb-11
279.4
271.5
272.95
1000
272950
-40200
HINDUNILVR
7-Feb-11
277
271.5
274.35
1000
274350
-38800
ANALYSIS:
rd
As on3
MARCH the amount invested in the shares HINDUNILVR was Rs. 313150 by purchasing
the
1000
th number of shares at close price of Rs. 313.15
th shares of the company fell down to Rs . 274.35Thus by selling the
But on 7
Feb
the price
of 7
the
shares
after
holding
it till
Feb ,the total loss of Rs. 38800 was observed
a.SHORT FUTURE:
DATE 3rd Jan 2011
SSDSSSSSSSSSSSSSSSSS
Investmnt
309000
p/l
-34650
EXP.DATE
24-Feb-11
Short future @309
SYMBOL
HIGHPRICE
HINDUNILVR
DATE
10-Jan11
11-Jan11
12-Jan11
13-Jan11
14-Jan11
17-Jan11
18-Jan11
19-Jan11
20-Jan11
21-Jan11
24-Jan11
25-Jan11
27-Jan11
28-Jan11
31-Jan11
HINDUNILVR
HINDUNILVR
LOW
PRICE
CLOSE PRICE
QTY
TOTAL VALUE
P/L
317.65
306.5
309
1000
309000
312.5
303.3
307.95
1000
307950
-1050
310.5
301.6
304.9
1000
304900
-4100
307.15
300.25
302.2
1000
302200
-6800
313.2
301.55
302.55
1000
302550
-6450
305.5
300
301.65
1000
301650
-7350
304.8
300.5
301.85
1000
301850
-7150
303.75
298.45
299.65
1000
299650
-9350
301
296.35
299.9
1000
299900
-9100
300.95
297
298.2
1000
298200
-10800
302
296
297.95
1000
297950
-11050
303
280.55
281.9
1000
281900
-27100
283
270
270.7
1000
270700
-38300
275
267
271.95
1000
271950
-37050
276.95
266.4
271.15
1000
271150
-37850
1-Feb-11
274
267
269.65
1000
269650
-39350
HINDUNILVR
2-Feb-11
276.55
269.1
274.6
1000
274600
-34400
HINDUNILVR
3-Feb-11
282.2
272.5
278.95
1000
278950
-30050
HINDUNILVR
4-Feb-11
279.4
271.5
272.95
1000
272950
-36050
HINDUNILVR
7-Feb-11
277
271.5
274.35
1000
274350
-34650
HINDUNILVR
HINDUNILVR
HINDUNILVR
HINDUNILVR
HINDUNILVR
HINDUNILVR
HINDUNILVR
HINDUNILVR
HINDUNILVR
HINDUNILVR
HINDUNILVR
HINDUNILVR
HINDUNILVR
ANALYSIS:
Enter into short future
on 6th Jan at Rs. 309
By holding it till 7TH Feb,we may reduce the loss Rs
b.SHORT PUT:
Investment
DATE
38800
1100
56
from
to 34650
p/l
EXP.DATE
24-Feb-11
Short put @1.1
SYMBOL
DATE
STK.PRICE
CLS.
PRICE
SET.PRICE
NO.OF CTRT
QTY
TOT.VAL
P/L
HINDUNILVR
10-Jan-11
280
1.1
2.25
1000
1100
HINDUNILVR
11-Jan-11
280
1.1
2.1
1000
1100
HINDUNILVR
12-Jan-11
280
1.1
2.35
1000
1100
HINDUNILVR
13-Jan-11
280
1.1
2.6
1000
1100
HINDUNILVR
14-Jan-11
280
1.95
1.95
1000
1950
850
HINDUNILVR
17-Jan-11
280
2.45
2.45
1000
2450
1350
HINDUNILVR
18-Jan-11
280
2.35
2.35
1000
2350
1250
HINDUNILVR
19-Jan-11
280
2.8
2.8
1000
2800
1700
HINDUNILVR
20-Jan-11
280
2.65
2.65
1000
2650
1550
HINDUNILVR
21-Jan-11
280
2.65
1.7
1000
2650
1550
HINDUNILVR
24-Jan-11
280
2.1
2.1
1000
2100
1000
HINDUNILVR
25-Jan-11
280
8.45
8.45
109
1000
8450
7350
HINDUNILVR
27-Jan-11
280
13.1
13.1
177
1000
13100
12000
HINDUNILVR
28-Jan-11
280
11.4
11.4
51
1000
11400
10300
HINDUNILVR
31-Jan-11
280
14.1
14.1
22
1000
14100
13000
HINDUNILVR
1-Feb-11
280
15
15
1000
15000
13900
HINDUNILVR
2-Feb-11
280
10.8
10.8
62
1000
10800
9700
HINDUNILVR
3-Feb-11
280
7.6
7.6
37
1000
7600
6500
HINDUNILVR
4-Feb-11
280
11.25
11.25
26
1000
11250
10150
HINDUNILVR
7-Feb-11
280
10.8
10.8
1000
10800
9700
ANALYSIS:
Enter into a short thput on 6th Jan at Rs 1.1
By holding it till 7 Feb ,we can earn the profit of Rs. 9700
5.FINDINGS:
The buyer of a put option will not exercise his option (to sell) if, on expiry, the price of the
asset in the spot market is more than the strike price of the call.
A trader who believes that a stock price will increase can buy the stock or instead sell a put. The
trader selling a put has an obligation to buy the stock from the put buyer at the put buyer's option. If
the stock price at expiration is above the exercise price, the short put position will make a profit in
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the amount of the premium. If the stock price at expiration is below the exercise price by more than
the amount of the premium, the trader will lose money, with the potential loss being up to the full
value of the stock
SUGGESTIONS:
If it looks like the stock-price will remain above the strike-price then you should
probably hold the short position until expiration, because the put will probably expire
worthless and we will be able to keep the "premium" we got for selling the put in the
first place.
Sell a stock when the reasons you bought it dont hold true anymore. . If your stock is going down,
and you realize its a crappy company, get rid of it.
6.CONCLUSION:
Using
andisfutures
as a hedging tools we can minimize the loss to some
extentthe
butoptions
the profit
not guaranteed.
Hedging can be used to reduce risks.
Hedging is not speculation to get benefited from it and it does not work always.
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7.BIBLIOGRAPHY:
BOOKS
1. Mihir Dash, Kavitha V, Deepa K M, Sindhu S, November 2008, A Study of
Optimal Stock &
Options Strategies1
2.NATIONAL STOCK EXCHANGE, 2009. NSEs Certification in Financial Markets:
Securities Market (Basic) Module. Mumbai: National Stock Exchange of India
3.Options, Futures and Other Derivatives, By John C Hull
4.Jianwei Zhu, August 15, 2000 Modular Pricing of Options
5.Bas J M Werker and Bertrand Melenberg, March 1997 On the Pricing of Options
in
Incomplete Markets
JOURNALS:
Mihir Dash, Narendra Babu and Mahesh Kodagi, Indian Journal of Finance,
Speculation Strategies Using Investment In Options2 Vol. 1, No. 4,November
2007.
WEBSITES:
www.nseindia.com
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www.HedgeMyOptions.com
http://www.optiontradingtips.com/options101/why-trade-options.html
http://www.optionseducation.org/strategy/strategy_index.jsp
www.ssrn.com
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