S&P BSE SENSEX and BANKEX Derivatives: A Comprehensive Guide

Index Futures: S&P BSE SENSEX Futures

The futures labeled BSX, linked to the S&P BSE SENSEX index, consist of contracts each containing 10 units. These contracts have a minimum price variation of Rs 0.05. Various contract lengths are available for these futures, including options for 7 weekly and 3 monthly periods. The market for these futures is open from 09:15 AM to 03:30 PM. Regarding their expiration, the monthly contracts terminate on the last Friday of the respective contract month, while the weekly contracts end every Friday. The settlement of these contracts is carried out in cash, based on the closing price of the underlying index on the day of expiration.

S&P BSE BANKEX Futures

S&P BSE BANKEX Futures, carrying the BKX code, track the S&P BSE BANKEX index. These futures involve a lot size of 15 units, maintaining the same tick size as SENSEX Futures at Rs. 0.05. Like their SENSEX counterparts, BANKEX futures are available in 7 weekly and 3 monthly serial contracts, operating within the same trading hours. Expiration follows a similar pattern, with monthly contracts ending on the month’s last Friday and weekly contracts expiring on Fridays. Final settlements are also made in cash based on the closing price of the BANKEX index on the day of expiry.

Index Options: S&P BSE SENSEX Options Breakdown

The options for the S&P BSE SENSEX, represented by the BSX code, offer a diverse range of contract periods, including 7 weekly, 3 monthly, 3 quarterly, and 8 semi-annual options, each with a lot size of 10. These options have a tick size of Rs. 0.05 and are quoted in Indian Rupees per index value. Operating hours mirror those of the future, from 09:15 AM to 03:30 PM. These European-style options provide a broad choice of at least 41 strikes, including 20 in-the-money, one at-the-money, and 20 out-of-the-money, with strike price intervals set at 100 index points. Expiry dates are the last Fridays for monthly, quarterly, and semi-annual contracts and every Friday for weekly contracts. Final settlements are cash-based, calculated on the underlying index’s closing price on the expiration day.

S&P BSE BANKEX Options

For the S&P BSE BANKEX options, identified by the BKX code, the structure is similar to the SENSEX options, with a lot size of 15. These European-style options are available in 7 weekly and 3 monthly contracts. Each option has a tick size of Rs 0.05; the premium is quoted in Rupees per index point. The trading hours are consistent with other derivatives, and the options offer a minimum of 41 strike prices. The expiration schedule is identical to the SENSEX options, with monthly contracts ending on the last Friday of the contract month and weekly contracts expiring on Fridays. The settlement procedure also aligns based on the closing price of the BANKEX index on the expiration day.