Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

NSE Halves Inter-Strike Distance from September

30 Jul 2013Deepak Shenoy1 min read

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What is "NSE Halves Inter-Strike Distance from September" about?
What category is this article in?: Premium Portfolio
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 30 July 2013.
How long does this article take to read?: 1 min read

NSE has changed the Nifty strike prices to be 50 points between strikes, rather than the 100 points it is now. In a circular, the new strikes will magically appear after August 30, 2013.

Given the liquidity in the Nifty, it makes sense to have strikes at 1% intervals; Nifty options at a 100 apart leave too little value in trading spreads.

I remember when trading such options were commonplace, until new rules came in and widened the distance between strikes to 100. Of course, if the Nifty were to drop all the way to 4,000 this would make even more sense; but that is a little too far a drop to happen. Or, given recent events, is it?