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Tata Steel F&O Adjustments: What Traders Need to Know as Dividend Impacts Contracts


Updated: June 01, 2025 04:02

Image Source: The Financial Express
Tata Steel has announced Futures & Options (F&O) contract adjustments, following its ₹3.60 interim dividend declaration on May 22. The adjustments will take effect on June 6, impacting both futures and options contracts.
 
Key Highlights:
•⁠  ⁠Futures Contracts: The reference rate on June 5 will determine the adjusted price. Open positions will be carried forward at the daily settlement price minus ₹3.60. If the June contract closes at ₹160, it will be revised to ₹156.40.
 
•⁠  ⁠Options Contracts: All strike prices in Tata Steel’s option chain will be reduced by ₹3.60 from June 5. For example, a ₹160 strike price will be adjusted to ₹156.40.
 
•⁠  ⁠Stock Trend: Despite these adjustments, Tata Steel’s overall trend remains unaffected, meaning traders can maintain their positions while noting the contract changes.
 
Outlook:
With the dividend adjustment in place, traders should monitor price movements post-June 6. While the contract values will shift, market fundamentals remain intact, allowing investors to stick to their trading strategies.
 
 Source: The Hindu BusinessLine

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