Most Liquid Options on NSE

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	| align="center" style="background:#f0f0f0;"|'''LIQUIDITY'''		| align="center" style="background:#f0f0f0;"|'''LIQUIDITY'''
	| align="center" style="background:#f0f0f0;"|'''PREMIUM'''		| align="center" style="background:#f0f0f0;"|'''PREMIUM'''
-	|----	+
-	|[[Bharat Heavy Electricals Limited (500103-BY)]] Capital Goods High |	+	|-
-	|----	+	|[[Bharat Heavy Electricals Limited (500103-BY)]]
-	|[[DLF Ltd.]] |Real Estate|High| |	+	|Capital Goods
-	|----	+	|High
-	|[[Hindalco Industries Ltd.(HINDALCOSL-BY)]]|Basic Materials|Very High | |	+	|
-	|----	+
-	|[[ICICI Bank (ICICIBANK-BY)]]| | | |	+	|-
-	|----	+	|[[DLF Ltd.]]
-	|Idea Cellular| | | |	+	|Real Estate
-	|----	+	|High
		+	|
		+
		+	|-
		+	|[[Hindalco Industries Ltd.(HINDALCOSL-BY)]]
		+	|Basic Materials
		+	|Very High|
		+	|
		+
		+	|-
		+	|[[ICICI Bank (ICICIBANK-BY)]]
		+	|Banking
		+	|
		+	|
		+
		+	|-
		+	|Idea Cellular
		+	|
		+	|
		+	|
		+
		+	|-
	|Infrastructure Development Finance Corporation (IDFC)| | | |		|Infrastructure Development Finance Corporation (IDFC)| | | |
	|----		|----

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Revision as of 08:15, November 18, 2008

Although National Stock Exchange (NSE) of India boasts of listing option contracts with expiries of upto 3 months on nearly 300 stocks, there is hardly any liquidity on most of these contracts. Anyone who has dabbled with options on NSE will agree that:

1. Most of the stocks do not have enough buying/selling activity in option contracts
2. Spread between the ask and bid prices is abnormally high
3. Option contracts are available only for the near month expiry

After being continuously involved in options trading for the last two years, I have compiled a list of stocks which have enough liquidity to be considered for meaningful trading or hedging. However, even these options are liquid only for near month expiry.

COMPANY NAME	INDUSTRY	LIQUIDITY	PREMIUM
Bharat Heavy Electricals Limited (500103-BY)	Capital Goods	High
DLF Ltd.	Real Estate	High
Hindalco Industries Ltd.(HINDALCOSL-BY)	Basic Materials
ICICI Bank (ICICIBANK-BY)	Banking
Idea Cellular
| | |
| | |
Infosys Technologies (INFY) | | | |
Larsen & Toubro Ltd.(LNT-BY) | | | |
Mahanagar Telephone Nigam (MTE) | | | |
S&P CNX Nifty Index (CNXNFTY-IN) | | | |
| | |
National Thermal Power Corporation Ltd. (NTPC-BY) | | | |
| | |
Reliance Communications (532712-BY) | | | |
Reliance Industries Limited (BOM:500325) | | | |
Reliance Infrastructure Ltd.(RELINFRA-BY) | | | |
Satyam Computer Services (SAY) | | | |
State Bank of India (SBI-BY) | | | |
Tata Steel Limited (TATASTL-BY)| | | |
| | |

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