I am new to stock market and I learning options and futures trading through various web sites
My doubts
If I am bullish on market I can buy nifty call
If I am bearish on market I can buy nifty put
And what happen if I reverse this transaction
I mean if I am bullish on market I can short sell nifty put
And If I am bearish on market I can shot sell nifty Call
I am assuming that the market is going to down and I decide to short sell a nifty call ( for example jan6100CE ) is it possible?
I think the short selling in option is called "option writing" is it ?
and again if i short such a call when should i buy back that call , or what happen if i won't buy and the nifty index will settle on 5900 in January 27 will i get 200*50 in my account ?
Everyone saying do not short option and that is similar to buy an unlimited risk,
Can’t we set a stop loss for such trade and avoid unlimited risk? , if not why? , because we can set stop loss on equity short sell
What happen if i short sell NIFTY JUNE6600 CALL, the cmp is 171 I am sure the market will fall again in into 6000 or 5900 range on Feb or march
at that time i can buy back that call may be 50 or 60 rs am I right ? but I never find a tips or anything related to sell a June call anywhere.
and one more doubt why the nifty June call and put are trading so earlier ? before I thought we can only buy a call or put just 3 moth before its expiry date
Please help me with your knowledge
Thank u very much
santhosh
My doubts
If I am bullish on market I can buy nifty call
If I am bearish on market I can buy nifty put
And what happen if I reverse this transaction
I mean if I am bullish on market I can short sell nifty put
And If I am bearish on market I can shot sell nifty Call
I am assuming that the market is going to down and I decide to short sell a nifty call ( for example jan6100CE ) is it possible?
I think the short selling in option is called "option writing" is it ?
and again if i short such a call when should i buy back that call , or what happen if i won't buy and the nifty index will settle on 5900 in January 27 will i get 200*50 in my account ?
Everyone saying do not short option and that is similar to buy an unlimited risk,
Can’t we set a stop loss for such trade and avoid unlimited risk? , if not why? , because we can set stop loss on equity short sell
What happen if i short sell NIFTY JUNE6600 CALL, the cmp is 171 I am sure the market will fall again in into 6000 or 5900 range on Feb or march
at that time i can buy back that call may be 50 or 60 rs am I right ? but I never find a tips or anything related to sell a June call anywhere.
and one more doubt why the nifty June call and put are trading so earlier ? before I thought we can only buy a call or put just 3 moth before its expiry date
Please help me with your knowledge
Thank u very much
santhosh
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