SMC Summer Internship Project

A STUDY ON OPTION STRATEGIES
ADOPTED BY INVESTORS WITH SPECIAL

REFERENCE TO
S M C G L O B A L S E C U R I T I E S LT D .
Name: Sahil Khanna

Enrl. No. : 01715901721
BBA Morning B
SMC GLOBAL SECURITIES LTD.
SMC Group, a leading financial services provider in India is a

vertically integrated investment solutions company, with a pan-
India presence. Its products and Services include Institutional
and retail brokerage of equity, commodity, currency, derivatives,
online trading, investment banking, depository services, clearing
services, IPOs and mutual funds distribution, Portfolio
management, wealth advisory, insurance broking, equity and
commodity research. SMC is one of the most active trading
organizations in India, averaging over 3,50,000 trades per day.
SMC’S CORPORATE CLIENT GROUP
Corporate Client Group(CCG) deals in :

• Online Fund Transfer.
• Trade in NSE, BSE and F&O on a single screen.
• Real Time Streaming Quotes.
• Instant Order/Trade confirmation in the same window.
• Online connectivity to Back Office Reports.
• Online IPO facility.
• Back up facility to place Trades through our trading call center.
OPTIONS STRATEGIES
Options strategies are specific approaches or plans that

investors and traders use to achieve specific financial objectives
using options contracts.
Options are financial derivatives that give the holder the right,
but not the obligation, to buy (call option) or sell (put option)
an underlying asset at a predetermined price (strike price)
before or at a specified expiration date.
OPTIONS STRATEGIES
Most strategies that options investors use have limited risk but
also limited profit potential. For this reason, options strategies
are not get-rich-quick schemes. Transactions generally require
less capital than equivalent stock transactions, and therefore
return smaller amounts - but a potentially greater percentage of
the investment - than equivalent stock transactions.
Before you buy or sell options you need a strategy, and before
you choose an options strategy, you need to understand how you
want options to work in your portfolio. A particular strategy is
successful only if it performs in a way that helps you meet your
investment goals.
RESEARCH METHODOLOGY
DATA COLLECTION SOURCE:

• The data used in the whole project is Primary Data .
• Primary Data was conducted within the organization so as to understand different
perspectives of people regarding the study by collecting data from the
Questionnaire.
POPULATION:
• For the study the data has been collected from all the age groups
• This includes the data provided by the employees of CCG, SMC.
SAMPLING TECHNIQUE:
• The sampling design which is used here is convenience sampling.
SAMPLE SIZE:
• It is the number of observations used for calculating estimates of a given
population.
• Here the sampling size is 51
OBJECTIVES
1. Investigate and evaluate commonly used options strategies, such

as covered calls, protective puts, straddles, and spreads.
2. Examine the risk and return characteristics of different options
strategies to determine their suitability for various investor
profiles and market conditions.
3. Explore how investors utilize options for hedging against market
volatility and protecting their portfolios from adverse price
movements.
4. Investigate speculative options strategies, like long calls and long
puts, to assess their potential for generating significant profits and
their associated risks
TYPES
Option Strategies
Spread Combination Synthetic
Combination of
Either All Calls or All Either only Buying
Futures and Options
Puts or only Selling
for arbitraging
SCOPE
The project encompasses a diverse array of option strategies, including but not limited to:
• Covered Call Strategy: This involves holding a long position in a stock while
simultaneously writing (selling) call options on the same asset. The goal is to generate income
from the premiums received from selling the calls.
• Protective Put Strategy: This strategy involves holding a long position in a stock and
purchasing put options to hedge against potential downside risk.
• Straddle and Strangle Strategies: These strategies involve buying both call and put options
with the same expiration date and strike price (straddle) or with different strike prices
(strangle). They are used to capitalize on significant price movements, regardless of the
direction.
• Bullish and Bearish Spread Strategies: These strategies involve using combinations of call
and put options to profit from both bullish (upward) and bearish (downward) price movements
while managing risk.
• Collar Strategy: In this strategy, an investor holds a long position in a stock, buys a
protective put, and finances the put by selling a covered call. This creates a range of protection
against both downside and upside risk
Benefits:
• Enhanced Understanding: Readers will
gain a comprehensive understanding of how
option strategies work, their potential
PROJECT benefits, and the market conditions where
METHODOLOGY they are most effective.
• Risk Management: By exploring strategies
like protective puts and collars, investors
The project employs a can learn how to mitigate risk in their
combination of theoretical
portfolios.
analysis and practical
examples to illustrate the • Income Generation: Covered call and
mechanics and outcomes of other income-focused strategies can help
each option strategy
individuals generate additional income from
their existing stock holdings.
• Flexibility: Understanding a variety of
strategies provides investors with the
flexibility to adapt to different market
scenarios and tailor their approaches to their
specific goals.
CONCLUSION
The project on option strategies serves as a valuable resource for

both novice and experienced investors seeking to harness the
power of options. By delving into the mechanics, benefits, and
risks of various strategies, readers can make informed decisions,
optimize their investment approaches, and potentially enhance
their overall portfolio performance.
REFERENCES &BIBLIOGRAPHY
Bibliography
1. www.wikipedia.com
2. www.moneycontrol.com
3. ww.google.co.in
4. www.bseindia.com
5. www.finance.yahoo.com
6. www.money.rediff.com
7. www.finance.google.com
Mr. Naresh Gogia 8. www.equitymaster.com
(Vice President, CCG) 9. www.myiris.com
SMC Global Securities 10. www.economictimes.com
11. www.nseindia.com
Ltd
12. www.economictimes.com
13. www.yahoofinance.com
Thank You!!

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A STUDY ON OPTION STRATEGIES

ADOPTED BY INVESTORS WITH SPECIAL

Name: Sahil Khanna

SMC Group, a leading financial services provider in India is a

Corporate Client Group(CCG) deals in :

Options strategies are specific approaches or plans that

DATA COLLECTION SOURCE:

1. Investigate and evaluate commonly used options strategies, such

Spread Combination Synthetic

The project on option strategies serves as a valuable resource for

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