This document provides an overview of a summer internship project on options trading strategies. The project will explore different types of options strategies and analyze how they can be used to profit from market movements while limiting risk. Research will involve analyzing historical stock market and options contract data to identify strategies. The goal is to help investors protect their portfolios from losses in a volatile market. Limitations include the complexity of the stock market and difficulty evaluating returns based on single indicators.

1. A
Summer Internship Project Synopsis
On
“Options Strategies”
Submitted To:-
Prof. -------------------
Under The Guidance Of
Mr. ----------------
City Sales Manager
Share Khan Bangalore
Submitted By:-
Pradeep Singha
(PGDMA-1135)
Dayananda Sagar Business School

2.  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
Dayananda Sagar Business School

3.  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
Dayananda Sagar Business School

4. creative use of Options Strategies makes stock options the most
versatile financial instrument in the world today.
 Objective Of The Study:
 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.
Dayananda Sagar Business School

5.  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.
Dayananda Sagar Business School