Trade Marks Act - Defendant's adoption of Trademark is not in good faith and potential confusion encroaches upon Plaintiff's statutory trademark rights : HC (See 'Legal Desk') SEBI Act - Noticee was maintaining call records which were sent to SEBI : SEBI (See 'Legal Desk') Arbitration - Petition u/s 29A for extension of mandate of Arbitral Tribunal can be filed even after mandate has expired : HC (See 'Legal Desk') Mines Ministry to hold 2-day Critical Minerals Summit (See 'Corp Brief') IBC - When one party owes debt to another and creditor is claiming under written agreement providing for rendering 'service', debt is operational debt if claim of debt has some connection with service : SC (See 'Legal Desk') Companies Act - Stamp duty @5% market value of property is liable to be paid only when property is situated within State of Madhya Pradesh otherwise not : HC (See 'Legal Desk') SEBI Act - Final opportunity of inspection of documents and cross-examination of witnesses should be given to Appellants : SAT (See 'Legal Desk') SARFAESI Act - Mere discovery of new or important matter or evidence is not a sufficient ground for review ex debito justitiae : HC (See 'Legal Desk') Conference organized on Maritime Amrit Kaal Vision 2047 (See 'Corp Brief') PMLA -Bail application can be dismissed as petitioner failed to satisfy conditions for grant of bail : HC (See 'Legal Desk') CSIR, NIScPR organize national workshop to celebrate World Intellectual Property Day (See 'Corp Brief') SEBI Act - Appellants have failed to substantiate their claim of financial distress nor have they brought any new fact or circumstances requiring grant of interim relief : SAT (See 'Legal Desk') ACC delivers lifetime highest annualised PAT (See 'Corp Brief') Trade Mark Act - Marks are visually phonetically and deceptively similar to Plaintiffs' trademarks : HC (See 'Legal Desk') SJVN inaugurates First Multi-purpose Green Hydrogen Pilot Project (See 'Corp Brief') IBC - Even if CIRP commences, Directors, who are incharge of affairs of Company cannot be absolved of any wilful default committed by borrower Company : HC (See 'Legal Desk') REC to extend loan of Rs 1869 Cr for Kiru Hydro Electric Project (See 'Corp Brief')

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Bank Nifty's weekly options picking up

Published: Jun 30, 2017

By TIOLCORP News Service

NEW DELHI, JUNE 30 2017: It has been noticed that volumes in weekly options on Bank Nifty index has risen nearly four-fold in the past one year. Weekly options in India are available only for the Bank Nifty index. In addition, their average daily trade volumes (ADV) have surpassed the total volumes of the monthly options due to increased interest from the high net worth individuals (HNIs) and proprietary desk. ADV of the weekly options rose to ? 318 crore in May 2017 compared with ? 81 crore in June 2016, according to NSE. Also, it was 55% higher than the monthly contracts in May 2017.

The contract of weekly options is introduced each Thursday, and they expire on the next Thursday with adjustments for holidays. They are used to either hedge an event risk which is too close, making a monthly option inappropriate, or to take advantage of price mismatch between the current and fair values of options reflected by theta.

There are a couple of reasons for success. A trader can buy weekly option to hedge the portfolio when event risk is the closest by paying the option premium for just one week rather than for an entire month in case of monthly options. The premium cost of weekly options is nearly half of the monthly options. Weekly options can be used for speculative gains on theta. Theta measures the rate of decline in the value of options due to the passage of time. Any difference between the prices based on the time decay adjusted value and the current price increase trading interest.

However, there is a flip side to the weekly options. Due to short duration and rapid time decay, traders rarely have time to recoup losses, if any.

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