Just as you traders use volumes to detect the potential of stock prices, analysing active futures and options contracts gives you an indication of where the stock prices are going to go in the future. Since the underlying stock has several futures and options contracts analysing why some contracts are more active than the others can give you a lot more clarity than just using conventional technical analysis methods. So let me show you how to use this advanced feature efficiently in a step by step process.
To access the tool, you need to click on “FnO Analysis” in the main menu and select “Active Contracts” as shown in the image above.
Types of contracts: You can choose from different types of derivative contracts namely:
• Index Futures
• Index Options
• Stock Futures
• Stock Options
• Currency Futures
• Currency Options
• Commodity Futures (Yet to be enabled).
• Options & Futures (Combined List of futures and options)
Select any of the above and click on “Go”.
Options: When you choose options, you can further drill down and select either call options or put options based on your preferences. Click on “Go” to apply the screener.
Columns: Let’s understand what each column represents.
• Instrument type – It shows you the different instrument type in your chosen filters. Unless you choose “Options & Futures”, this will be uniform.
• XCH (Exchange) – This is NSE by default.
• Ticker – It shows you all the different underlying symbols.
• Expiry Date – Needless to say, you get to know when the underlying contract expires.
• Options Type – CE denotes European Call Option (Default), PE denotes European Put Option (Default), XX denotes futures contracts.
• Strike Price – It is only applicable for options contracts. For futures, the display will be 0.00 by default.
• No. of Contracts – Show you how many contracts have been traded.
• Last – Last Traded Price of the underlying futures and options contracts.
• % Chg – Percentage change of from previous day’s closing price.
• OI – Perhaps the most important one of all, it shows you the open interest in the underlying contract.
• Underlying price – It is the spot price of the symbol. It is very important to take note of this as the relationship of the spot price with the derivative prices reflects bullishness or bearishness in stocks or indices as the case may be.
If you need any clarifications on how to use this tool, please ask me in the comments section below. It’ll make us happy if you use it efficiently.
Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India.