Lot Sizes

Lot sizes Table:

Every option contract is worth the price of underlying multiplied by the quantity of underlying in the contract. In our example it was 10 Tonnes of Sugar Cane at 2000 Rs price so the contract was worth 20000 Rs. Now we would have simply split it in to 10 different contracts worth 2000 Rs for 1 Tonne of sugar cane in each contract. Or it could have been one contract worth 100 Tonne as well.

Exchange on its part tries to maintain each contract value roughly between Rs 2-3 Lacs. The table below gives you the lot size in contracts of various indices as well as few popular stocks. Entire list of lot sizes of all indices (7) stocks (228) can be found here.

The table above gives the lot sizes for near, next and far month contracts for indices as well as many blue chips. Please note that S&P500 and DJIA contracts are recently introduced so you will not see their near month lot size. Even the stock list also keeps changing from time to time.

Contracts for NIFTY are not limited to these three option chain till far month. NIFTY contracts as far as few years down the line are also tradable however most of the online brokers do not activate them for retail traders like you and I.

I trade primarily NIFTY unless something very interesting is happening in a sector index or a particular stock. For our trade, NIFTY lot size is 50 and Mini-NIFTY lot size is 20 which was started with the intention of increasing participation of retails and small investors in Derivatives market.

Now before I start posting actual trades and strategies behind them, we will have small explanation of Options pricing. As per my plan, I should be able to post my first trade post by this weekend. As I said earlier, follow that at your own peril.