New to options

Hi guys,

Today I was told by a trader that it is not possible to exercise option contracts! He said I could only trade contracts.... is this true ? Is it possible to exercise options in india before expiry ?

Thanks.

You can exercise stock options not index options as they are european.

Thanks Capricorn. The option in question was WIPRO with type CA( assuming its american). Will have to clarify with the broker again.

All stock options are american.

Exercising stock options have higher charges so you are warned.

Yes, the STT will be charged at a rate as applicable to Cash (Delivery) shares.

check out this link mate. guide to options trading

for beginner's pretty good.

beginners: http://alpha.investopresto.com/InvestmentEducation/Options.aspx
advanced: http://alpha.investopresto.com/InvestmentEducation/Options-Advanced.aspx