A study on options trading in financial derivatives (comparative study between TCS and infosys) Dr. Chandrika N.*, Professor Chalam G.V.** *Asst. Professor & HOD, Annamacharya Institute of Technology and Sciences, Karakambadi Road, Tirupati-517 520, Andhra Pradesh, India **Professor, Department of Commerce & Business Administration, Acharya Nagarjuna University, Nagarjuna Nagar - 522 510. Guntur: A.P., India Online published on 28 January, 2015. Abstract In recent decades financial markets have been marked by excessive volatility. Businesses face difficult to estimate their future production costs and revenues due to unexpected movements in foreign exchange rates, interest rates, commodity prices and price fluctuations. In such cases the derivative securities provide them a valuable set of tools for managing the risk. Derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situations of risk-average investors by locking the asset prices. This paper deals with the financial derivatives especially on options. To find the options contract, profit/loss of the investor can be calculated by analyzing the spot price, strike price, premium value and lot size of the share. And investor profitability or the risk can measure with the use of option strategy evaluation tool (OSET) representing in graph format it will help full in easy to understanding. It concentrates about the operations of option trading in the TCS and Infosys by considering the 2 months price movements during the April and May 2013. Top Keywords Derivatives, Options, Prices, Profitability and Risk. Top |