As per the SEBI circular SEBI/DNPD/Cir-34/2008 issued on 11-Janury-2008, BSE has introduced 'Long Dated Options on Sensex ' whereby trading in Sensex (normal lot of 15 only and not 'mini' Sensex) Options contracts is available with an expiry upto 3years. The following new options are available for the Sensex (normal lot of 15) Options contracts:
a. Along with the existing 3 monthly rolling contracts, three additional 3 fixed quarterly months of the cycle Mar/Jun/Sep/Dec would be available.
b. Further, 5 additional semi-annual months of the cycle Jun/Dec would be available, so that at any point in time there would be options contract with up to 3 years tenure available.
To illustrate, from the March series onwards i.e from February 29, 2008 onwards, the users will get to trade the following Futures and Options contracts on the normal Sensex market lot of 15 :
Three monthly Futures contracts viz. March, April and May 2008
Three monthy Options contracts viz. March, April and May 2008
Three quarterly Options contracts viz. June 2008, September 2008, December 2008
Five semi-annual Options contracts viz. June 2009, December 2009, June 2010, December 2010 and June 2011.
The existing three monthly Futures and Options series will continue for all the other underlyings presently available in the system and there will be no long dated options available for those underlyings.
Security Symbol BSX
Underlying SENSEX
Contract Multiplier 15
Contract Period Upto 3 years
Exercise Style European
Settlement Style Cash
Tick size 0.05 index points
Premium Quotation In index points
Strike price Intervals Shall have a minimum of 3 strikes (1 in-the-money, 1 near-the-money, 1 out-of-the-money).
Trading Hours 9:55 a.m. to 3:30 p.m.
Last Trading/Expiration Day: Last Thursday of the contract month in case of monthly & last Friday of contract maturity in case of weekly options. If it is a holiday, then the immediately preceding business day. For this purpose business day is a day during which the underlying stock market is open for trading.
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