NSE introduces Long Term options on Nifty

The National Stock Exchange of India, NSE, has recently introduced Long-dated options. Till recently, the F&O section had only 3 months long dated stock and index based options. In countries like US and UK, we already have options that have long term expiry which goes as long as 5 years. In India, it was much required as futures and options are used extensively for hedging purpose. NSE has done a good job as providing respite to millions of traders and fund managers to hedge their positions and look for long term investment horizons.

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Now you can even find options with expiry date as long as 2011.

Unfortunately, the long dated options are introduced only for NIFTY based options. We should very soon see similar move by NSE for individual Stock based options as well.

Revised number of strikes for NIFTY Options :

Index Level	First, second and third month expiries	3 quarterly expiries	5 half yearly expiries
upto 2000	4-1-4	6-1-6	4-1-4
>2000 upto 4000	4-1-4	6-1-6	4-1-4
>4000 upto 6000	5-1-5	8-1-8	5-1-5
>6000	6-1-6	8-1-8	6-1-6

Revised strike price intervals for NIFTY Options :

Index Level	First, second and third month expiries	3 quarterly expiries	5 half yearly expiries
upto 2000	25	25	50
>2000 upto 4000	50	50	100
>4000 upto 6000	50	50	100
>6000	50	50	100

Click here to see a complete list of Long dated options available