Options contracts see a rise in activity ahead of 2019 Lok Sabha polls

Experts say activity in derivatives could see an increase as the Lok Sabha elections come nearer

Sachin P Mampatta  |  Mumbai 

Market participants have begun taking positions in the derivatives market to protect their portfolios from any adverse election outcome. Options contracts expiring in June 2019 are seeing a rise in activity as investors look to hedge their positions in case stocks slide after the results.

Activity is maximum in put options at a strike price of 9,000 and 10,500 on the Nifty50. Put options at both these levels are out-of-the-money, which means they would be profitable only if the benchmark Nifty50 falls significantly from its Friday’s close of 10,859.90. A put option gives ...

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First Published: Mon, December 31 2018. 01:30 IST