What does Index Options mean ?
Index Options are options contracts in which the underlying is an Index, e.g. Nifty 50 and S&P BSE-Sensex. Each option of an index is a collection of stocks that are based on a particular theme. The weight of each stock is what determines the price of an index.
Index Options come in different lot sizes, strike prices, and expiry dates. Each index option has a 3-month expiry cycle, which includes 1, 2, and 3 months.
Index Options Benefits
There are many benefits to investing in index options, including:
- Offers greater exposure through a single trade
- Diversification leads to better risk management
- Trading costs and risk are lower
- Trades with lower volatility
Index Options in India
- Options for Nifty 50 Index Options
- NSE Bank Nifty Index Options
- NIFTY IT Index options
- NIFTY Infra Index options
- NIFTY PSE Index options
- NIFTY MID50 Index Options
- Options for the FTSE 100 Index
- S&P BSE SENSEX Index Options
- BSE SENSEX MINI OPTIONS
- BSE TECK OPTIONS
- BSE BANKEX OPTIONS
- BSE OIL AND GAS OPTIONS