Lot Sizes and Strikes for 9 New F&O Contracts

5paisa Research Team 5paisa Research Team 9th December 2022 - 12:16 pm

On 31st December, 9 new stocks were added to the F&O trading eligible list. As on 30th December, a total of 3 indices and 188 stocks were allowed to be traded in the futures and options segment. With the addition of these 9 stocks on 31st December, the total number of eligible stocks in F&O goes up to 197, while 3 indices will continue to trade on F&O.

List of stocks added to the F&O list on 31st December

Given below are the 9 stocks added to F&O on 31-December with indicative lot values based on the announced lot sizes.

Company Name	NSE Code	Lot Size	Indicative Lot Value #	Quantity Freeze
Aditya Birla Capital Ltd.	ABCAPITAL	4,400	Rs.532,400	176,000 (40 lots)
Balrampur Chini Mills Ltd	BALRAMCHIN	1,600	Rs.578,800	64,000 (40 lots)
Gujarat Narmada Valley Fertilizers	GNFC	1,300	Rs.568,360	52,000 (40 lots)
Hindustan Copper Ltd	HINDCOPPER	4,300	Rs.527,395	172,000 (40 lots)
Honeywell Automation Ind	HONAUT	15	Rs.615,795	600 (40 lots)
IDFC Limited	IDFC	10,000	Rs.557,000	400,000 (40 lots)
NBCC (India) limited	NBCC	12,000	Rs.552,600	480,000 (40 lots)
Rain Industries Limited	RAIN	2,500	Rs.582,375	100,000 (40 lots)
Tata Communications Ltd	TATACOMM	400	Rs.558,940	16,000 (40 lots)

_{Data Source: NSE (# Closing prices of 30-Dec are considered)}

Actually, there were 10 stocks that were to be added to the F&O trading list on 31st December. However, on 29-December, the NSE issued a circular cancelling the inclusion of Supreme Industries from the F&O list as it had not met one of the required criteria for inclusion in the list of F&O eligible stocks.

Option Strike price details for 9 stock additions

Given below are the 9 stocks added to F&O on 31-December with strike price model, step value and leeway for additional strike prices

Company Name	NSE Code	Step Value	ITM / ATM / OTM Strikes	Extra strikes intraday leeway
Aditya Birla Capital Ltd.	ABCAPITAL	2.50	10-1-10	10
Balrampur Chini Mills Ltd	BALRAMCHIN	5.00	15-1-15	15
Gujarat Narmada Valley Fertilizers	GNFC	10.00	9-1-9	9
Hindustan Copper Ltd	HINDCOPPER	2.50	10-1-10	10
Honeywell Automation Ind	HONAUT	500.00	17-1-17	17
IDFC Limited	IDFC	1.00	12-1-12	12
NBCC (India) limited	NBCC	1.00	10-1-10	10
Rain Industries Limited	RAIN	5.00	10-1-10	10
Tata Communications Ltd	TATACOMM	20.00	14-1-14	14

_{Data Source: NSE}

The above strikes shall all be active with effect from 31-December. The strike refer to the combination of in-the-money, at-the-money and Out-of-the-money strikes. In the money strikes are the strikes that can be exercised profitably by the buyer of the options.

Check :- Two Additions to the F&O list from Jan-22 Contracts

Did F&O inclusion impact stock prices on the first day?

While 1-day returns may not be conclusive, they are at least indicative of the impact that F&O inclusion had on the price of the stock.

Company Name	NSE Code	Lot Size	Closing Price on 31-Dec	Returns over 30-Dec close
Aditya Birla Capital Ltd.	ABCAPITAL	4,400	Rs.123.70	+2.23%
Balrampur Chini Mills Ltd	BALRAMCHIN	1,600	Rs.369.00	+2.00%
Gujarat Narmada Valley Fertilizers	GNFC	1,300	Rs.440.00	+0.64%
Hindustan Copper Ltd	HINDCOPPER	4,300	Rs.124.40	+1.43%
Honeywell Automation Ind	HONAUT	15	Rs.41,970.00	+2.23%
IDFC Limited	IDFC	10,000	Rs.63.20	+13.46%
NBCC (India) limited	NBCC	12,000	Rs.45.95	-0.22%
Rain Industries Limited	RAIN	2,500	Rs.239.70	+2.90%
Tata Communications Ltd	TATACOMM	400	Rs.1,464	+4.77%

_{Data Source: NSE}

If you look at the daily returns on the 9 stocks added to F&O on 31-December, the returns on all the stocks except NBCC India have been positive. While the returns on most stocks were in the range of 1-3%, two stocks stood out. IDFC Ltd rallied by +13.46% while Tata Communications rallied +4.77%.

However, in both these stocks there were specific stories too. IDFC gained from its proposed merger with IDFC First Bank, while Tata Communications gained from the telecom sector outlook upgrade by ICRA. However, it has been observed that addition in F&O has deepened liquidity in the stock and that should be visible in the next few days of trading.

Also Read:

1) 5 Mantras for Trading Derivatives

2) 5 Mantras for Trading in Futures

3) 5 Mantras for Trading in Options