Option types on NSE & BSE

#2
Why are options on NSE and BSE European type?
Is there any stock that has American type option?
"All stock options contracts expiring on January 27, 2011 and onwards shall have European exercise style only," said a NSE circular. "Accordingly there shall be no interim exercise available for all stock options contracts expiring on January 27, 2011 and onwards and all the in-the-money stock options contracts shall get automatically exercised on the expiry day."

Source:
Code:
h::p://www.nseindia.c0m/content/circulars/cmpt16167.pdf
 
#3
I'm not sure how the trade is settled.


Do I have to sell it on or before the expiry?
Or do I leave it just like that - do nothing and after expiry, the amount will be debt to my account automatically?

Example:

I bought a Jan-25 call option (CE) for xyz stock on 15 Jan, 2012 for Rs. 6 (1 lot = 1000).

On date of expiry i.e., Jan 25, 2012 the Jan-25 CE for xyz stock traded at Rs.9

what happens? Do I login to my trading a/c and sell it manually or what?
 
#4
I'm not sure how the trade is settled.
Do I have to sell it on or before the expiry?
Or do I leave it just like that - do nothing and after expiry, the amount will be debt to my account automatically?

Example:

I bought a Jan-25 call option (CE) for xyz stock on 15 Jan, 2012 for Rs. 6 (1 lot = 1000).

On date of expiry i.e., Jan 25, 2012 the Jan-25 CE for xyz stock traded at Rs.9

what happens? Do I login to my trading a/c and sell it manually or what?

Hello all,

Any clue on this?
 

Taurus1

Well-Known Member
#5
I'm not sure how the trade is settled.


Do I have to sell it on or before the expiry?
Or do I leave it just like that - do nothing and after expiry, the amount will be debt to my account automatically?

Example:

I bought a Jan-25 call option (CE) for xyz stock on 15 Jan, 2012 for Rs. 6 (1 lot = 1000).

On date of expiry i.e., Jan 25, 2012 the Jan-25 CE for xyz stock traded at Rs.9

what happens? Do I login to my trading a/c and sell it manually or what?
Yes, or you can allow it to be settled by the exchange at the last traded price.
 

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