Stock option trading strategy in india


I stock option trading strategy in india read all your chaptrs. Which means he is in effect paying Rs. All options that can be exercised Explained ahead on or before the contract expiry are called American options. There are so many different ways and means of playing the markets that it really is confusing for a newbie just trying to figure out where to start and what to do or not to do.

Who can write options in the Indian Derivatives market? Nice work, keep it up. The option seller is thus under an obligation to execute the contract. This is same as going LONG in futures. Suggest you read through this module to get a fair sense of how it works.

August 22, at Sir, how do we measure liquidity? June 30, at 7:

Do note, since Ajay has already committed 1lk, he stock option trading strategy in india still buy the land, but ends up paying Rs 1lk extra in this process. Is it not correct to buy a put rather selling a call to make loss limited? Selecting the strike price is a function of time, volatility, and expectation on market movement. Can we expect monthly unlimited plans for options traders or derivative segments? Can a stop loss be placed for options?

Sir, In the example given above if Venu decides to settle the deal with cash instead of selling the land directly, Ajay will be getting 4 lacs and Venu gets to keep the land right? November 14, at 8: The explanations are extremely lucid. April 7, at 1:

Is it necessary for the option contract to cross the strike price to be in profit. What is Over the Counter Options? Hi Sir, Options is like greek and latin to me. Now I have a question that I purchased a call Rs.

Bank Nifty as the name suggests is group of banks that decide Bank Nifty Index. Likewise if the price goes below Rs. You can sell the option if you choose on the very next day and take home the profit i. This is because of the lack of liquidity and stock option trading strategy in india associated volatility. Do We need to square off the position on expiry day to exercise the option or is it automatic if we are in the money?

Can you please clarify the logic behind option pricing. Again if he can put the 1L to much more productive use in other avenues say his businessprofits would further reduce to that extent. December 23, at 6: I have 1 querry i.

March 4, at 4: Perhaps I should have worded it better. November 28, at 4: Now confident level is increasing……. By the way 7th module is complete…you may want to check that.

April 6, at 3: July 31, at 1: February 13, at This is a loss making zone for our position if the option is exercised. March 19, at 5: