NCFM Options Trading Strategies case studies
NCFM Options Trading Strategies · Put your knowledge to work in context.
NCFM (NSE Certification in Financial Markets) is a certification programme delivered through the NCFM login portal, described on the NSE site as the portal for online testing and certification programmes offered by NAL Academy Limited (formerly NSE Academy Limited), an NSE group company. This page covers the Options Trading Strategies module, one of the self-study NCFM modules listed under the Learn section. The NCFM Options Trading Strategies case studies are 5 cases and about 4,959 words.
1Short Single-Stock Call Facing a Dividend and a Cash-Funded Delivery
Six sessions before expiry, ABC Ltd - an F&O stock with a lot size of 500, American-style options and physical settlement - trades at ₹1,542. Your client is short 8 lots of the 1,500-strike call, sold two weeks ago at ₹52; the call is quoted at ₹52 today, so it carries ₹42 of intrinsic value and ₹10 of time value.
944 words, about 5 min2Long Straddle into a Policy Event: Cheap IV, Rich Skew, Brutal Theta
Nifty is at 24,800 with four sessions left in the weekly contract and the RBI policy decision two sessions away. Quotes: the 24,800 call is ₹133 and the 24,800 put is ₹158, so the at-the-money straddle is ₹291, or 1.17% of spot.
1,023 words, about 5 min3Concentrated Stock, a Hard Drawdown Cap, and Three Overlay Choices
A client owns 6,000 shares of a large-cap F&O stock (lot size 500), bought 14 months ago at ₹410; the stock is now ₹560. She wants to keep the shares for at least another 12 months for conviction reasons, but states she cannot accept a drawdown of more than ₹2 lakh from today's price.
996 words, about 5 min4The 1x2 Call Ratio: A 'Spread' With a Naked Second Short
Nifty is 24,000 with three weeks to the monthly expiry and implied volatility at 13%. A trader buys one 24,000-strike call at ₹300 and sells two 24,300-strike calls at ₹172 each, taking a net credit of ₹44 - ₹3,300 on the 75-unit lot.
1,001 words, about 5 min5Expiry-Day Short Straddle on a Physically Settled Stock
Expiry Thursday, 15:10. The client is short 20 lots of a stock-option straddle on PQR (lot size 500, so 10,000 shares) at the 620 strike, having collected ₹7.50 on the call and ₹6.00 on the put - ₹1.35 lakh in total.
995 words, about 5 min