Newbie's Question on Options

[jntrade]

thank you again!
I will come again if I have more doubts about futures and option
Thanks for your help!

 

[ivanboesky]

No problem at all... thats what this forum is all about.

 

[jntrade]

This Forum is a grat place on cyberth!
Especially when persons like you are LIVEing there!
Thanks

 

[rsg]

Hi Ivanboesky,
If I buy nifty 3100 march call and sell 3200 nifty march call against it, it is bull call spraed. Can you tell me the margin requirement for this strategy? If I have to place this, is this one order or 2 seperate orders? Is there any broker who place spread order as one order with limit price?

Thank you
rsg

 

[ivanboesky]

Yes, it is a bull spread. The margin wont be too high... Ask your broker for the exact amount of margin. You can enter two separate orders, or a single spread order specifying the price differential between the two option prices.

 

[chander_rb]

Hi,

In case it helps, CE/PE stands for Call or Put Options "European" and CA/PA stands for Call/Put "American".

In case it is common knowledge, then pls. excuse.

Regards

arrbee

 

[kedarvb]

Hallo sir,
what will happen if i buy any in the money option & becoz of illiquid volume i cannot sqr off the same , then shall i get credit on that option on expiry date
how ?

 

[vince]

Hallo sir,
what will happen if i buy any in the money option & becoz of illiquid volume i cannot sqr off the same , then shall i get credit on that option on expiry date
how ?

If it is a nifty option you will get credit equivalent to strike price - closing price on expiry day automatically if it is in the money.

An american option (stock options) can be excercised at any time.

 

[sreperu]

HI Traderji,
In order to calculate the Profit/Loss graphs with the options, we need the implied Volatilities of the indivisual stocks and index. Could you please guide me to get those?

Thanks in advance!

Regards!
Sreeny

 

[musicjunkie]

Hello all,
I like most here have never traded in derivatives but am very interested and trying to read as many books as possible. I had a few questions,
1) Does the futures market have a lot size of 100 each per contract or its the standard size like Option which change quite often?
2) And is there a minimum amount in need to place an order with? or it it that i can trade the minimum lot size.
3) do ihave to put up margin while writing options also? the margin turns out to be quite alot, i trade in icici (i know) and they ask for 25% initial.

I hope i was clear with the above questions