option trading

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  #1  
Old 12th October 2007, 10:33 PM
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sethuramansid is on a distinguished road
Default option trading



Hi All,

I have a doubt regarding option trading in stock futures. When i have a call option and when it is in the money, there is no trade in that strike price. In this case, is there any possibility for me to book profit even when there is no trade in that particular strike price? Seniors please guide me.

Regards
S. Sethuraman

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  #2  
Old 13th October 2007, 04:14 AM
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kavidhev is on a distinguished road
Default Re: option trading

Hi,
Someone should be ready to buy your offer. If no one is willing

to buy at the price you offer you have to wait for the buyer.

Better to choose the active price range and high volatility.

Happy trading,

regards,
Kavidhev

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  #3  
Old 13th October 2007, 05:38 AM
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rkkarnani is on a distinguished road
Default Re: option trading

Quote:
Originally Posted by sethuramansid View Post
Hi All,

I have a doubt regarding option trading in stock futures. When i have a call option and when it is in the money, there is no trade in that strike price. In this case, is there any possibility for me to book profit even when there is no trade in that particular strike price? Seniors please guide me.

Regards
S. Sethuraman
In such cases where there are no buyers or buyers are at lower than the 'in the money amount' you can always 'exercise' your illiquid call.
The stock calls can be exercised at any time and calls on Indices can only be exercised on the clearing day or day of expiry.

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  #4  
Old 13th October 2007, 09:28 AM
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sethuramansid is on a distinguished road
Default Re: option trading

Quote:
Originally Posted by rkkarnani View Post
In such cases where there are no buyers or buyers are at lower than the 'in the money amount' you can always 'exercise' your illiquid call.
The stock calls can be exercised at any time and calls on Indices can only be exercised on the clearing day or day of expiry.
Thanks for the reply. But can you please explain me what do you mean by EXERCISE, sorry i am not very much familiar with these technical words.

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  #5  
Old 13th October 2007, 11:22 AM
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bvpraveen is on a distinguished road
Default Re: option trading

Quote:
Originally Posted by sethuramansid View Post
Thanks for the reply. But can you please explain me what do you mean by EXERCISE, sorry i am not very much familiar with these technical words.
Come on Sethu. You are trading in Options, but doesn't know even the very basic term in Options. Kindly learn some tutorials at least.

Best of luck,
Praveen.

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  #6  
Old 13th October 2007, 02:25 PM
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sethuramansid is on a distinguished road
Default Re: option trading

Thanks. I got the answer for exercise here

http://www.thehindubusinessline.com/...2200851200.htm

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  #7  
Old 13th October 2007, 05:11 PM
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rangarajan is on a distinguished road
Default Re: option trading

Dear Praveen,
I have come across many people who actively,successfully trade in option are ignorant of Exercising.But,u have made sethu search for it on his own & find out.Goole search is a boon to learn.

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