InvestorQ : What are spread contracts and how are they used by traders in F&O?
Aashna Tripathi made post

What are spread contracts and how are they used by traders in F&O?

Answer
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NISHA Nayak answered.
1 year ago


When you have a long futures or short futures position, you need to roll over the position in case you want to carry it forward to the next month. Typically, rolling over a long future means selling the current month future and buying the same strike future in same contract. On the other hand, rolling over a short future means buying back the current month future and selling the next month future in same contract. A much easier way is to use the roll window or the spread window. Here you can just define the spread at which you want to roll over the futures position and you can easily get the futures rollover done at the said spread. Check the sheet below for some popular spread contracts.

Instrument

Underlying

Expiry

Option Type

Strike

Prev Clos

Open

High

Low

Last

Volume

Turnover

Underlying

Index Options

BANKNIFTY

21-Feb-19

PE

26,500.00

96.5

94

129

72.75

129

4,57,383

24,32,828.41

26654.25

Index Options

BANKNIFTY

21-Feb-19

CE

27,000.00

114.05

104.65

130.2

68

69.95

4,31,831

23,40,213.97

26654.25

Index Options

NIFTY

21-Feb-19

CE

10,700.00

96.2

113.6

113.65

45.2

46

1,91,699

15,47,288.41

10640.95

Index Options

NIFTY

21-Feb-19

CE

10,800.00

45.7

50

54.7

16.45

17

1,85,259

15,04,392.47

10640.95

Index Options

BANKNIFTY

21-Feb-19

CE

27,100.00

80.5

55.4

93.35

42.55

42.55

2,71,754

14,76,483.51

26654.25

Index Options

BANKNIFTY

21-Feb-19

CE

27,200.00

53.65

47

64.6

25.6

27.95

2,53,947

13,83,618.04

26654.25

Index Options

BANKNIFTY

21-Feb-19

CE

26,900.00

155.6

150.6

174.55

96.35

99

2,30,772

12,47,740.82

26654.25

Index Options

BANKNIFTY

21-Feb-19

PE

26,700.00

154.3

127.8

205

126.6

205

2,30,430

12,37,803.14

26654.25

Index Options

BANKNIFTY

21-Feb-19

PE

26,600.00

122.2

122.2

164.35

92.3

161.7

2,26,351

12,09,790.41

26654.25

Index Options

NIFTY

21-Feb-19

PE

10,600.00

36.95

35

56

25.2

55.75

1,48,892

11,88,813.66

10640.95

Index Options

NIFTY

21-Feb-19

PE

10,700.00

65.2

65.5

103.9

50.35

101.95

1,39,925

11,31,735.44

10640.95

Index Options

BANKNIFTY

21-Feb-19

CE

27,300.00

34.3

27

44.4

15.1

15.1

1,99,010

10,87,627.06

26654.25

Index Options

BANKNIFTY

21-Feb-19

PE

26,400.00

75.2

58.7

100.2

55.45

100

1,92,116

10,17,173.53

26654.25

Index Options

BANKNIFTY

21-Feb-19

CE

26,800.00

206.55

187.95

228.35

134.45

134.45

1,85,814

10,02,650.11

26654.25

Index Options

NIFTY

21-Feb-19

CE

10,900.00

16.75

11.1

19.85

4

4.15

1,13,370

9,27,547.99

10640.95

Index Options

BANKNIFTY

21-Feb-19

PE

26,300.00

58.2

50

81

42

78

1,70,751

9,00,056.52

26654.25

Index Futures

NIFTY

28-Feb-19

-

-

10,746.55

10,809.90

10,809.90

10,653.30

10,655.20

1,11,343

8,92,693.34

10640.95

Index Options

NIFTY

28-Feb-19

CE

10,800.00

88.35

89.95

92.8

57.75

58.4

1,05,828

8,62,642.13

10640.95

Index Options

BANKNIFTY

21-Feb-19

PE

26,800.00

190.8

181.1

257.4

151

256

1,57,961

8,52,997.30

26654.25

Index Options

NIFTY

28-Feb-19

PE

10,700.00

98.2

90.5

144.95

85.15

143.95

1,04,553

8,48,707.93

10640.95

The price mentioned in the above table does not mean the price of the underlying but the price of the spread. The spread keeps moving up based on the gap between the current month future and the next month future.