A REPORT

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

1.3 ASSUMPTIONS AND LIMITATIONS

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

15

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

2.11 TIME VALUE OF OPTIONS

23

2.12 SHORT PUT

26

3. COMPANY ANALYSIS
3.1 ABOUT INDIA BULLS SECURITIES LTD
3.2 PROFILE OF THE COMPANY

27
28

3.3 POWER INDIABULLS

28

3.4 PRODUCTS AND SERVICES OF INDIA BULLS SECURITIES LTD

29

3.5 PROCESS OF OPENING AN ACCOUNT AT INDIA BULLS SECURITIES LTD 30

4. DATA ANALYSIS:
-

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

64

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

1.3 ASSUMPTIONS AND LIMITATIONS

1. The stock futures and options considered for analysis has purposely been
selected as one having stocks in precise quantities equal to their lot sizes
in the F & O segment , to achieve easier and optimal hedging of the
portfolio and also making it easier for analysis and understanding of the
impact of the strategies on the portfolio.
There also exists a different way to hedge portfolios which have stocks in
odd lot sizes like the optimal hedging ratio, delta hedging, etc.
2. In the analysis the period of one month option contract expiry i.e, 1st Jan
to 24th Feb2011
has been considered to ensure ease of calculation and relevance to the
current market
scenario and hence practical learning.
3. The stock options considered in analysis have assumed to be held till
expiry and then exercised if it ends being in the money or left to be
expired if they are out of the money or at the money. This helps in
calculation of actual returns using these strategies.

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.

In India, Derivatives are securities under the Securities Contracts (Regulation)

Act, 1956 and trading of derivative is governed by the regulatory framework
under the SC(R) A. SC(R) A,
1956 defines derivatives to includeA security derived from a debt instrument, share, loan whether secured or
unsecured, risk instrument or contract for differences or any other form of
security.
A contract which derives its value from the prices, or index of prices, of
underlying securities.

2.2 DERIVATIVE PRODUCTS

There are various types of derivative products. They are briefly explained below:
Forwards: A forwards contract is a customized contract between two entities,
where settlement takes place on a pre-specified future date at todays preagreed price. It is a legally binding agreement between two parties to buy or
sell an asset at a certain time in the future at a certain price. They are not
traded and are not standardized.
Futures: It is a legally binding agreement between two parties to buy or sell an
asset at a certain time in the future at a certain price. They are entered into
through exchange, traded on exchange and clearing corporation/house provides
the settlement guarantee for trades. They are standardized.
Options: Option is the right given by the option seller to the option buyer to buy
or sell an asset at a specific price on or before a specific date. They are not
legally binding and the buyers have an option to dishonor the contract for a loss
amount of premium paid. Options are of two typesCalls and Puts. Calls give the buyer the right but not the obligation to buy a
given quantity of the underlying asset, at a given price on or before a future
date. Puts give the seller the right but not the obligation to sell a given quantity
of the underlying asset, at a given price on or before a future date.
-

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.

10

 Arbitrageurs are in the business to take advantage of a discrepancy between

prices in two different markets. Arbitrage is the practice of taking advantage of
a price differential between two or more markets: a combination of matching deals is struck
that capitalize upon the imbalance, the profit being the difference between the market prices
2.3 TERMINOLOGY OF DERIVATIVES
General terms and concepts related to derivatives:

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) futures price(F)

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.

11

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
-

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

13

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.

How Do Investors Hedge?

Hedging techniques generally involve the use of complicated financial instruments known as
derivatives, the two most common of which are options and futures. We're not going to get into the
nitty-gritty of describing how these instruments work, but for now just keep in mind that with these
instruments you can develop trading strategies where a loss in one investment is offset by a gain in a
derivative.

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.
-

15

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.

16

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.

17

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.

18

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
-

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

20

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

2.9 OPTIONS NOMENCLATURE

Index option: these options have index as the underlying. Nifty and SENSEX are
traded. And the spot market of Nifty and Sensex acts as the underlying.
Stock options: stock options are options on individual stocks. Currently, we have
226 stock options in NSE and 126 in BSE that are open for trade. The stocks in
the spot market act as the underlying.

21

 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.

2.10 PRICING OF OPTIONS

Option Pricing Models
The purpose of an option pricing model is to determine the theoretical fair value
for a call or put
-

22

option given certain known variables. In other words - to determine an option's

expected return.
Basically, the expected return of an option contract is a function of two
variables:
The payoff of the option at maturity date
The probability of the option being in-the-money at maturity

1.Black and Scholes Option Model

Fisher Black, Myron Scholes and Robert Merton were the three academics that
developed the much acclaimed option pricing model now called Black and
Scholes.
The Black and Scholes option pricing model was the result of the educational
paper called Real Options, written by these academics in 1973. The model was
so highly praised that they were awarded the prestigious Noble Prize in 1997.
The Black and Scholes model has spawned a family of other pricing variations
since then, although the Black and Scholes still remains the foundation model
for pricing options today.
Black Scholes Inputs
S = Stock Price
X = Exercise Price
r = Risk Free Interest Rate
T = Time to Expiration (Years)
N(x) = The Cumulative Normal Distribution Function
= Standard Deviation
Black Scholes Formula
The Black Scholes equation states that a:
Call Option =
Where:

23

Given put call parity

The price of put option must there be-

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.

2.A Short Option Pricing Method

If you've no time for Black and Scholes and need a quick estimate for an at-themoney call or put option, here is a simple formula.
Price = (0.4 * Volatility * Square Root(Time Ratio)) * Base Price
Time ratio is the time in years that option has until expiration. So, for a 6 month
option take the square root of 0.50 (half a year).

24

2.11 TIME VALUE OF OPTIONS

Most investors and traders new to options markets prefer to buy calls and puts
because of their limited risk and unlimited profit potential. Buying puts or calls
is typically a way for investors and traders to speculate with only a fraction of
their capital. But these straight option buyers miss many of the best features of
stock and commodity options - such as the opportunity to turn timevalue decay
into potential profits.
When they establish a position, option sellers collect time-value premiums, paid
by option buyers. Rather than struggling against the ravages of time value, the
option seller can benefit from the passage of time, and time-value decay
becomes money in the bank even if the underlying is stationary. For option
writers (sellers), time-value decay thus becomes an ally instead of a foe. If you
have ever sold covered calls against stock positions, you can appreciate the
beauty of selling time value.
In this article I focus on the importance of time value in the option-pricing
equation. But before turning to a detailed look at the phenomenon of time value
and time-value decay, let's review some basic option concepts that will make it
easier for you to understand what we mean by time value.
Depending on where the underlying price is in relation to the option strike price,
the option can be in, out or at the money. Let's look at this relationship while
keeping in mind our central focus value on time.
When we say an option is at the money, we mean the strike price of the option
is equal to the current price of the underlying stock or commodity. When the
price of a commodity or stock is the same as the strike price (also known as the
exercise price) it has zero intrinsic value, but it also has the maximum level of
time value compared to that of all the other option strike prices for the same
month. Figure 1 provides a table of possible positions of the underlying in
relationship to an option's strike price.

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

26

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

SHORT PUT: SELL NOW, BUY LATER

A trader who believes that a stock price will increase can 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 increases, the short put position will make a profit in the amount of the
premium. If the
stock price decreases below the exercise price by more than the amount of the
premium, the

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

EXAMPLE OF SHORT PUT:

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

Commercial Vehicle loans

Home Loans
Loan Against Property
Commercial Credit Loans

29

SECURITIES

Equity Research
NRI Online Trading
Equity Research Securities
Commodities

REAL ESTATE

One Indiabulls Center

Nashik SEZ and Gurgaon SEZ
Indiabulls Financial Center
Central Park Hyderabad & Centrum Park Gurgaon

POWER BUSINESS

Power Trading
Hydro Power Project
Thermal Power Project

3.2 PROFILE OF THE COMPANY

Name of the company : INDIABULLS SECURITIES LTD.
Year of Establishment : 2000
Headquarter : Indiabulls Finance Centre,
Tower 1, 8th Floor,
Elphinstone Mills,
Senapati Bapat Marg,
Mumbai-400013
Nature of Business : Broking services
Services : Online IPOs, NRI Online Trading, Equity Research,
Number of Employees : Over 2000
Customers : Greater than 6lakhs
Website : www.indiabulls.com
Slogan : Creating a world of smart investors

3.3 PRODUCTS AND SERVICES OFINDIABULLS SECURITIES

LIMITED
-

30

1. Power Indiabulls: - Power Indiabulls (PIB) is an online trading platform which

brings you the power of a brokers terminal on your desktop.
2. Depository Services:- Indiabulls is a depository participant with the National
Securities
Depository Limited and Central Depository Services (India) Limited.
3. IPO Online;- You can quickly and seamlessly apply to the latest public offerings
with just a few clicks.
4. Indiabulls Signature Account:- Indiabulls Signature account provides you the
platform to trade in Equity and Derivatives
5. NRI Trading;- Non-Resident Indians (NRIs) can also enjoy the state of the art
Online trading Platforms of Indiabulls to trade in Indian Capital Markets.
6. Indiabulls Equity Analysis: - Indiabulls Equity Analysis complements its equity
broking and advisory services with high quality comprehensive report which can
be accessed online.
7. Currency Derivatives: - Indiabulls offers trading in the Currency Derivatives
Segment in National Stock Exchange (NSE).

3.4 POWER INDIABULLS

Power Indiabulls (PIB) is the advanced online trading platform from Indiabulls
Securities
Limited, the leading stock broker in India with a branch network spread across
the country. PIB provides the best in the class internet trading features and
delivers a seamless and rich online trading experience for its users. Whether
you are a Day-Trader who buy/sell stocks during the day or a Stock Research
Analyst who believes in taking a stock trading call after doing extensive
fundamental research & technical analysis, PIB fulfills your every stock trading
need from the comfort of your desktop.
PIB comes with a whole host of online features for the internet trading users
ranging from realtime stock prices, to live trading reports, charting, News Room.
For Market Experts & Stock

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.

3.5 THE PROCESS OF OPENING IN ACCOUNT AT INDIABULLS

SECURITIES LIMITED

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

By holding it till 7 Feb ,we can gain the profit of Rs .34000

36

ANNEXURE2:
2.TATA CONSULTANCY SERVICES LTD
Investment

579025

p/l

-13450

DATE

3rd Jan 2011

LOWPRICE

CLOSEPRICE

Buy Stock @1158.05

SYMBOL

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

DATE 3rd Jan 2011

SYMBOL

Investment

577675

p/l

-9075

DATE

EXP DATE

HIGHPRICE

SHORT FUTURE @1153.35

LOW
CLOSE
PRICE
PRICE

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

3rd Jan 2011

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

By holding it till 7 Feb ,we can reduce the loss to Rs.100

ANNEXURE:3
3.SAIL
Investment
p/l
SYMBOL

DATE

DATE

3rd Jan 2011

3333333333333

LOW
PRICE

Buy Stock @187.95

CLOSE
PRICE
QTY

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

3rd Jan 2011

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

By holding it till 7 Feb ,we can earn the profit of Rs.14550

ANNEXURE4;
4.RELIANCE:
Investment
p/l
SYMBOL

DATE

DATE

3rd Jan 2011

mmmmmmmmmmm

Buy Stock @1055.6

CLOSEPRICE QTY

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:

3rd Jan 2011

HIGHPRICE

LOWPRICE

Short future @1022.85

CLOSE PRICE QTY

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

3rd Jan 2011

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

3rd Jan 2011

43

QTY

TOT.VALUE

P/L

Buy Stock @359.35

SYMBOL

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

3rd Jan 2011

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

3rd Jan 2011

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

3rd Jan 2011

LOW
PRICE

Buy Stock @704.1

CLOSE
PRICE
QTY

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

3rd Jan 2011

343500

46

p/l
EXP.DATE

SYMBOL

DATE

-22700
24-Feb-11

HIGHPRICE

Short future @687

CLOSE
PRICE
QTY

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

3rd Jan 2011

CLOSE
PRICE

Short put @20.25

SETTLE
NO.OF
PRICE
CTRT

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

3rd Jan 2011

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

3rd Jan 2011

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

3rd Jan 2011

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

3rd Jan 2011

50

Buy Stock @1308.45

SYMBOL

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

3rd Jan 2011

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

3rd Jan 2011

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

3rd Jan 2011

KKKKKKKKKKKKKKK

LOW
PRICE

Buy Stock @682.5

CLOSE
PRICE
QTY

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

3rd Jan 2011

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

3rd Jan 2011

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

3rd Jan 2011

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

57

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.

58

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

59

 www.HedgeMyOptions.com
http://www.optiontradingtips.com/options101/why-trade-options.html
http://www.optionseducation.org/strategy/strategy_index.jsp
www.ssrn.com

60

61

62

63

64

65

66

67

68

69

70