Equity Derivatives Research Reports India, NSE Derivatives
NSE derivatives have emerged as a major trading class. Volumes in the futures and
options segment have evolved into a multiple of the cash market segment in the last
15 years. Futures and options is a complex area and it calls for detailed analytics
before taking trading positions. Futures and options are different from taking a
pure-cash position. F&O positions are not so much about stock research as they are
about technicals, open interest levels, OI shifts, strike accumulation etc. All
this F&O intelligence is captured by LKP Securities in its Derivative Reports. Here
is what it is all about!
Understanding the derivatives market overview…
The derivatives market overview captures the key trends in the index futures in
the near month and the mid-month. Additionally, specific stocks that have seen sharp
increase in price or volumes or open interest are also separately highlighted. The
discount / premium of the Nifty are captured graphically on a rolling basis to take
a view on the direction of the market. The market overview also captures risk in
the markets through the Fear Index, which is better known as the Volatility Index
(VIX). This enables you to understand the returns per unit of risk in the futures
and options market.
NSE Derivatives analytics…
This segment of the equity derivatives research reports India captures the key analytics
and shifts in data points. At the index level, it captures how the call open interest
has shifted vis-à-vis the put open interest. This is a very important determinant
of market direction and the underlying trend of the markets. The analytics also
includes a detailed trend on the Implied Volatility (IV). The IV is an inverse look
at the risk in the market using the option prices as the option value. While the
methodology is complex, the data can be captured on a real time basis on the LKP
website. A very important determinant of the direction of the market is the PCR
of volumes and PCR of OI. These data points are juxtaposed with the market to get
a more granular understanding of the F&O trends.
Actionable inputs on the derivatives market in India…
At LKP Securities the focus is on empowering clients with value added inputs and
analytics to enable them to take derivative positions through a self-help process.
While futures are linear products, options are non-linear products. Hence by combining
these two one can create hybrid strategies in the NSE derivatives market like protective
puts, covered calls, bull-call spread, straddles, strangles etc. The LKP report
empowers the client by providing the trigger decision and a what-if analysis of
the profits/risk under various scenarios.
A very important F&O input is how institutional players operate in the F&O market.
Normally, FIIs and mutual funds are active in the derivative market for arbitrage
and for hedging their risk through index options. The F&O flows data juxtaposed
with cash market flows data gives you a holistic picture of the way the derivatives
market is emerging. The LKP Derivatives Research Report captures this entire spectrum.