Derivaties

Derivatives Market - NSE Futures & Options (F & O)

In Indian financial market, futures and options are cash-settled and the actual delivery of the underlying assets does not take place at all. But this has not deterred investors from trading in the F&O segment.

Call Options

It gives the buyer the right, but not the obligation, to buy the underlying security at a specific price for a specified time period.

Put Options

It gives the buyer the right, but not the obligation, to sell an underlying security at a specific price for a specified time period.

Strike price is the stated price per unit for which the underlying index or stock option may be purchased (in case of a call) or sold (in case of a put). The change (%), in the table below, indicates the change in price of that particular options over its previous close. Hence, a comparison between various call and put options would be indicative of the future expected movement of the market/stocks.