Finally ! L & T Finance & Holdings to be traded in the Futures & Options Segment from Tomorrow !
That’s the reason the Spot Price jumped 5% today to close at Rs 85.20
The NSE F & O Trading Symbol is L&TFH and Lot Size is 4000 making the At the Money Strike Price Contract Value Rs 340000 at current spot Rs 85 levels
Step Up Value will be 2.5 with number of Strikes provided In the money-At the money- Out of the money being 7-1-7 with additional 7 Strikes that could be enabled intraday
The Quantity Freeze Limit is 520000 shares …that’s worth Rs 4.42 crs at current Spot Price of Rs 85
Should be a very Interesting and High Volume Trading Counter with huge Open Interest Positions developing given that L & T Finance Holdings is a Front runner Banking License Aspirant and RBI is to seek Election Commissioner’s nod if they can announce the names of those from the applicants who have been awarded the banking licence before the General Elections to begin on April 7,2014
For those who want more on this and Naked and Hedging Strategies that can be adopted do visit a wider coverage on our freely accessible SCRIP STANDPOINT Module on www.jsalphaa.com as linked below
Finally ! L & T Finance Holdings in the F & O Segment from Tomorrow ! ~ Strategy ? ~ 12-Mar-2014
All the Best for those who are going to get involved in L & T Finance Holdings Derivatives Play
2 thoughts on “Finally ! L & T Finance & Holdings to be traded in the Futures & Options Segment from Tomorrow !”
Hi Gaurav, I see difference of 3 rupee between future at 75 and stock price of 78. How can I lock this Rs.3 arbitrage profit???
If you have at least 4000 shares or can borrow these it’s a simple Sell Spot at Rs 78/79 and lock in long on Futures at Rs 75….however here we assume that this difference will not exist too much when you want to repurchase the shares in spot and square of Futures….also this would involve tax on spot sales and even gains on futures should futures price move up…..however if you do not hold at least 4000 shares and are trying to lock in this difference,you will find it is not a secured strategy to go long in futures at Rs 75 and buy Rs 77.50 or Rs 80 Strike Price March Puts or even sell Calls … the Put premiums on these are very stiff at Rs 6 and Rs 7.40 respectively and though Call Premium is lower at Rs 2.75 for a Strike Price of Rs 80 the strategy can create net gains or loss situations and not securely lock in the difference…..