When the tail wags the dog: Futures & options
The rise in options volumes despite huge losses faced by retail investor has Sebi worried
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The rise in options volumes despite huge losses faced by retail investor has Sebi worried
The combined average daily turnover of the BSE and NSE hit its lowest point at Rs 72,512 crore, a 20 percent drop from the previous month, marking the largest decrease since June 2022. This is the first month-to-month decline since March 2023.
What looks like an easy arbitrage — borrowing at 8.5 percent and investing at 12 percent — is not so clear-cut. The transaction may work out in case equities give phenomenal returns, but one cannot go with such assumptions.
Mathematically, Narayan said, the best way to make money is asset allocation
A simple call option can be managed with a stop loss and revision of the same during the tenure of the trade, however, with a synthetic call we can do a little more