pradeep synopsis

A Summer Internship Project Synopsis

On

“Options Strategies”

Submitted To:-Prof. -------------------

Under The Guidance Of Mr. ----------------City Sales ManagerShare Khan Bangalore

Submitted By:-Pradeep Singha (PGDMA-1135)

Dayananda Sagar Business School

Company Introduction :

Sharekhan is the retail broking arm of SSKI, an organization with more

than eight decades of trust & credibility in the stock market. Sharekhan is

one of the top retail brokerage houses in India with a strong online trading

platform. It has one of the largest networks in the country with more than

800 outlets in more than 400 cities and India’s premier online trading portal

www.sharekhan.com.

The company offers:

Broking in Equities & Derivatives on NSE & BSE

Depository Services

Commodities Trading on MCX & NCDEX

IPO Services

Portfolio Management Services

Distribution Services

Structured Products with Fixed Returns


http://www.sharekhan.com/

Introduction Of Study :

What is Options?

Options are contracts that give the buyers the right (but not the

obligation) to buy or sell a specified quantity of certain underlying asset at a

specified price on or before a specified date. On the other hand, the seller is

under obligation to perform the contract (buy or sell the underlying). The

underlying asset can be share, index, interest rate, bond, rupee-dollar

exchange rate, sugar, crude oil, soybean, cotton, coffee etc.

The options that give their buyer the right to buy are called "Call

Options" and those which give their buyer the right to sell are called "Put

Options".

What is an Option Trading Strategy?

Option Strategies, or Options Based Investment Strategies, are

calculated ways of using options singly or in combination in order to

profit from one or more market movements. Option Strategies are a

direct alternative to traditional buying and selling of stocks and offers

greater profit potential with limited risk. Choosing which option

strategy to use starts from your opinion on the underlying stock.

Option strategies are merely the means through which you

transform your "prediction" of future stock movement into money

through option trading. Option Strategies give options traders the

versatility to profit from any opinions that they have on an underlying

stock and to limit risk even if that opinion moves against them. The


creative use of Options Strategies makes stock options the most

versatile financial instrument in the world today.

Objective Of The Stud y:

To explore the knowledge of applying different types of Option

Trading Strategies.

To study Option Strategies in the Stock Market in deeper sense.

To analyze the market fluctuation of nifty in future and Option

contract.

To make Stock holders purchase a protective put to hedge against

losses from a declining stock.

Importance Of The Study :-

It is helpful in future to know more about sensex and Nifty of

stock exchange and to explore the knowledge in stock market.

To work as a successful technical analyzer or investment

executive in this sector in Stock market.

Research Methodology:

Type of research design : Descriptive Research

Data collection method : Secondary method

Sources of secondary data : Websites, Magazines, Newspapers,

Official website, past records of Stock markets, etc….

Analysis of the data : By preparing charts and tables from the

data and compare them to find out which fund is giving high

return and making profit.


Limitations Of The Study :

Stock Market is very wider and complex market and there are

lots of strategies and techniques so it is difficult to interpret

deeply.

It is difficult to find out the return on the basis of one indicator

or instrument because there are many instrument are being used

which are different from each other.

Scope Of The Study :

To learn how a balanced understanding of options can help

protect you against the risks inherent in a volatile stock market.

Through careful research and analysis you can gain the skills

and confidence necessary to plan a winning strategy.
