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How do we analyse the future and option market on the base of the Fama-French model? Basically i want to know can we analyse derivative market on base of FAMA French or CAPM model ?

e.g for stock we can analyse the stock trend by using Fama french model(by calculating beta and alpha).

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One generally doesn't. The CAPM and by extension the Fama French (FF) model are used to analyse stocks.

Of course, you can use these models on the underlying of futures or options if these happen to be stocks but they aren't used directly and such an analysis of the derivatives would be incomplete if you just look at the outcomes of your CAPM or FF model.

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  • $\begingroup$ thanks for your value-able comment. $\endgroup$
    – harry_cool
    Jul 1, 2021 at 10:06
  • $\begingroup$ if we used CAPM,FF model on underlying values of stocks then how do we co-relate it with derivatives? $\endgroup$
    – harry_cool
    Jul 6, 2021 at 8:10

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