In the Indian market, option symbols, also known as option chain symbols or option tickers, follow a specific format that encapsulates various details about the option contract. These details typically include the underlying stock or index, the expiration date, the type of option (call or put), and the strike price. Here’s how to understand these symbols:
- Underlying Asset: The beginning of the symbol usually represents the underlying stock or index. For example, “INFY” for Infosys or “NIFTY” for the NIFTY 50 index.
- Expiration Date: The next part of the symbol indicates the expiration date of the option contract. This is typically given in a YYMMDD format. For example, an option expiring on May 27, 2023, would show “230527”.
- Option Type: This is represented by a single letter – “C” for Call options and “P” for Put options.
- Strike Price: Finally, the symbol ends with the strike price. This is the price at which the option can be exercised. The format may vary depending on the asset and the exchange, but it’s usually a straightforward numerical representation.
For example, an Infosys call option expiring on May 27, 2023, with a strike price of 1500 might be represented as “INFY230527C1500”.
It’s important to note that the exact format can vary slightly depending on the exchange and the data provider. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are the two main exchanges in India where options are traded. It’s always advisable to check the specific guidelines provided by the exchange or your trading platform to ensure an accurate understanding of the option symbols.
Understanding these symbols is crucial as they provide quick and essential information about the option contracts, aiding in making informed trading decisions.
