ICICI options trading any body checked this

T

tulika

Active Member
#2
#2
swagat86 said:
Hey guys i think the real competetion has begun. ICICI has decided to charge only one leg on Futs and options for Intrday traders. Say wat now??/

http://content.icicidirect.com/mailimages/variable01.htm#options
Click to expand...
I also read it yesterday... i am already trading through icici , and was planning to shift to some other brokerage house. but now question does not arise.. i am too happy... as there's is the best sevice in my view.
regards
tulika
 
B

basudeo

Member
#3
#3
Options

Total Eligible Premium Value per month Flat brokerage per contract lot (Rs.)

Effective Flat Brokerage On Intra Day Square Off (Rs.)

Above Rs. 20 lacs-- 65-- 32.5
Rs. 10 Lacs - Rs. 20 lacs-- 70-- 35
Rs. 5 lacs - Rs. 10 lacs-- 75-- 37.5
Rs. 2 lacs to Rs. 5 lacs-- 85-- 42.5
Less than Rs 2 Lac-- 95-- 47.5

I found above new rates at ICICI.

(1)Eligible turnover is based upon premium value. So most of the small traders will fall in Rs. 95/- catagory.

(2)Further service tax and stt will be added extra on this Rs.95/-

(3)If somebody wants to hold the option contract; this type of the policy of ICICI is certainly discouraging.

I dont find any sort of attraction in these rates.

Basudeo
 
S

swagat86

Active Member
#4
#4
basudeo said:
Options

Total Eligible Premium Value per month Flat brokerage per contract lot (Rs.)

Effective Flat Brokerage On Intra Day Square Off (Rs.)

Above Rs. 20 lacs-- 65-- 32.5
Rs. 10 Lacs - Rs. 20 lacs-- 70-- 35
Rs. 5 lacs - Rs. 10 lacs-- 75-- 37.5
Rs. 2 lacs to Rs. 5 lacs-- 85-- 42.5
Less than Rs 2 Lac-- 95-- 47.5

I found above new rates at ICICI.

(1)Eligible turnover is based upon premium value. So most of the small traders will fall in Rs. 95/- catagory.

(2)Further service tax and stt will be added extra on this Rs.95/-

(3)If somebody wants to hold the option contract; this type of the policy of ICICI is certainly discouraging.

I dont find any sort of attraction in these rates.

Basudeo
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Dear basudeo.

Even im not attched with ICICI, but abt brk yes
its very very interesting.


If ur takin an intrday position in an option contract say 4200 call or put totalbrk+STT+Service tax comes to Rs 89-90.


This means a break even of just 1.8 pts. Thats wat appeals me.


And u can always hold ur option position but in that case the break even will be 5 pts net.


thats all for now :cool:
 
B

basudeo

Member
#5
#5
Dear members,

ICICI has announced new brokerage rates, perhaps in competetion to Reliance Money but the policy makers at ICICI could not change their mind set.

The flat broking rates on option contacts are quite unrealistic. The reasons follow;

The premium rates on option contracts vary too much depending upon 2 factors.

(1) Nearness of strike price to underlying price. If satyam is 450/- at present the 450 call will be very much higher than 500/- call. Further the movement of 450/- call will be very much faster than 500/- call. So in flat rate system 500/- call is quite unattractive considering higher proportionate brokerage and lesser chance of earning.

(2)Second is expiration time of the contract. At the beginning of the month nifty calls attract around 200/- premium but the same call will quote below 10/- around 25th of the month. So brokerage is alright at the beginning of the month but what about when expiration time comes nearer and nearer. ICICI is certainly discouraging trades in options those quote at very low premium.

Basudeo
 
S

swagat86

Active Member
#7
#7
basudeo said:
Dear members,

ICICI has announced new brokerage rates, perhaps in competetion to Reliance Money but the policy makers at ICICI could not change their mind set.

The flat broking rates on option contacts are quite unrealistic. The reasons follow;

The premium rates on option contracts vary too much depending upon 2 factors.

(1) Nearness of strike price to underlying price. If satyam is 450/- at present the 450 call will be very much higher than 500/- call. Further the movement of 450/- call will be very much faster than 500/- call. So in flat rate system 500/- call is quite unattractive considering higher proportionate brokerage and lesser chance of earning.

(2)Second is expiration time of the contract. At the beginning of the month nifty calls attract around 200/- premium but the same call will quote below 10/- around 25th of the month. So brokerage is alright at the beginning of the month but what about when expiration time comes nearer and nearer. ICICI is certainly discouraging trades in options those quote at very low premium.

Basudeo
Click to expand...

hi basudeo,

hope u know that nse has made it mandatory for ever broker to charge 2.5% of premium max. My view point was only one - if nifty optons are day traded the breakeven is just 1.8 with icici. thats all. im not talkin here abt factors of pricing of options.


and one more thing im just a client not a sub broker or agent.


thanks
 
B

beginner_av

Well-Known Member
#8
#8
Yes of course...good breakeven if you are willing to let go of 50p to Re1 or more in slippages, by the time you refresh and get the quote. Not to say you may soon get RSI!!!
 
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