Can I BUY OCTOBER expiry NIFTY CALL/PUTT in SEPTEMBER ?

Can I purchase October expiry NIFTY CALL/PUTT in the month of SEPTEMBER ? Is it permitted ?



For example, today is 8-Sept-2012 ...
Can I buy 25-OCT-2012 expiry of NIFTY CALL/PUT option today ? ....I don't want to BUY NIFTY 27-sept-2012 expiry CALL/PUT because I find these bit expensive.




The reason I'm asking this query is :

I checked 25-OCT-2012 NIFTY CALL/PUT Option prices ..... Option prices are not changing .... So I'm bit doubtful and worried whether one can trade those....I'm not sure ..if buy is permitted then is there any trouble I may face if I purchase ?

This is going to be my first F&O trading ....long way to go...

You can definitely buy, only thing they will not be as liquid as the present month options are

OK. Thanks .... I plan to hold till October expiry.....Then I guess there will be no problem with liquidity ...

ya ..at the time of sep exp you will have good liquidity in oct series.. further you can even bye nov series now ... usually three months ( current , next and next to next ) will be available to buy for both in options and futures....

Thanks. This is helpful . Thanks for your time.

You will have to keep in mind the time premium on Oct. options will be high. If you find Sep. options to be expensive, next month options will be moreso.

Dear Reggie

You are right with that, but as the Oct and Nov options are further out, the time value will vanish much slower compare to actual month series options.

This is very helpful in case market not moves just now in your direction. One of the classical mistakes option beginners make is to choose options with a short life time. Even if the liquidity is not so big, your choices are big with a more out of the time option. Just one example:

You always will have the right to sell this options for the price you bought it. That is your right. Now in case the future goes the other direction, you can start to trade hedged and play the future during that time. If that move is over, you still have your option and if market starts to move in your direction, the time loss on that option will be far less compare to the actual series and your chance to make some profit with it are still at live.

Good trading

DanPickUp

This is a suggestion to you with the hope that you will take it in the right spirit:

While understanding the various aspects of the market, most of us have had, and will continue to have, a need for answers and clarifications to thousands of questions and confusions. What is distinguishing in your case is that you start new threads for too many of these. Why do you not consider starting one thread (or a few) for most of these, where you keep adding your queries as you go along.

Again, a suggestion.

MP

any take on this aspect?

Sure ... not a problem at all.....I'll consider it.

I'm sure many people will also be benefited because my queries are others queries too.

I'll also pass information whatever I gather from various sources and my own findings.

Thanks for all helpful posts.