Synthetic Future Analysis
Filter Options
Index or commodity option chain to analyse.
The ATM strike is picked from spot automatically; override it here.
Synthetic future — live price, formula and how to trade it
Track the NIFTY synthetic future against spot and the actual future to read carry, skew and directional conviction.
What is a synthetic future?
A synthetic future replicates a futures position using options: synthetic long futures = buy CE + sell PE, synthetic short = buy PE + sell CE, at the same strike and expiry. Its price behaves like a future but is built from the option chain.
The formula
Synthetic future = ATM strike + ATM call premium − ATM put premium. Worked example: strike 17,700, CE ₹150, PE ₹120 → 17,700 + 150 − 120 = 17,730.
Synthetic vs actual future
When the synthetic price sits above the actual future, calls are relatively rich vs puts (bullish skew); below it, puts dominate. Persistent gaps flag carry and arbitrage dislocations that Zerodha Varsity-style traders watch.
How to use this tool
Pick an index or commodity and expiry — the tool auto-selects the ATM strike — then read the green synthetic line vs the amber spot and cyan future lines. Hover for exact values and diffs vs the future.
Understanding Synthetic Future Analysis
The stock market is a vast landscape, and to navigate it successfully, traders need the right tools. Enter the “Synthetic Future Analysis” tool by JustTicks.in. This advanced tool is designed to provide traders with a deeper understanding of the market dynamics, including synthetic future prices, spot prices, and future prices.
Key Features
Comprehensive Data
Access both real-time and historical data to make informed decisions.
Visual Representation
Understand complex market dynamics with intuitive charts and analyses.
Customizable Analysis
Choose specific symbols and expiry dates to tailor the analysis.
Market Analysis
Comprehensive analysis of synthetic futures and market dynamics.
Price Insights
Track synthetic future prices and spot-future relationships.
Strategy Tools
Advanced tools for synthetic future trading strategies.
Advanced Analysis Capabilities
Real-time and Historical Depth
With the ever-changing nature of the stock market, having real-time and historical data at your fingertips can be a game-changer. The Synthetic Future Analysis tool offers this advantage, presenting detailed analyses and intuitive charts that help traders identify potential opportunities and risks in the market.
Mobile Accessibility
Our tools are designed to be responsive and accessible across various devices, including mobiles. This ensures that traders can access critical market data and analysis tools wherever they are, maintaining their edge in the market.
Frequently Asked Questions
What is a synthetic future in options?
A synthetic future is a position that replicates a futures payoff using two options at the same strike and expiry. Buying a call and selling a put creates a synthetic long future, while buying a put and selling a call creates a synthetic short future. Its price is derived from the option chain rather than the futures contract.
How is the NIFTY synthetic future calculated?
Take the ATM strike for the chosen expiry, add the ATM call premium and subtract the ATM put premium. For example, with strike 17,700, CE at Rs 150 and PE at Rs 120, the synthetic future is 17,700 + 150 - 120 = 17,730. This tool selects the ATM strike automatically and tracks the value through the session.
Why does the synthetic future differ from the actual future price?
Gaps come from option bid-ask spreads, strike rounding to the nearest ATM strike, liquidity differences between the option chain and the futures contract, and the carry (funding cost plus dividends) priced into the actual future. Persistent, widening gaps are the ones traders watch for carry and arbitrage dislocations.
What does a rising synthetic future tell you?
A rising synthetic future means call premiums are gaining on put premiums, which signals strengthening upside conviction. When it rises faster than the actual future, calls are getting relatively rich versus puts (bullish skew); a falling synthetic future points to puts dominating the chain.
How does the Synthetic Future Analysis tool differ?
The tool is specifically designed to provide insights into synthetic future prices, spot prices, and future prices, offering both real-time and historical data for comprehensive market analysis.
How can I customize the data?
Users can select specific symbols and expiry dates, ensuring focus on the most relevant data for their trading strategy.
Conclusion
The Synthetic Future Analysis tool by JustTicks.in is an invaluable asset for traders looking to delve deeper into market dynamics. By providing a clear picture of synthetic future prices, spot prices, and future prices, it empowers traders to make informed decisions and optimize their trading strategies.