Any one knew trading in Options!!!...cant find answer plz. help

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  #1  
Old 16th November 2006, 09:04 PM
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rickyric_ny is on a distinguished road
Unhappy Any one knew trading in Options!!!...cant find answer plz. help



Help needed....Would like to know on excerising an option should I need a Full cash in my account.

say for example: spot price IVRCL 340

I am buying IVRCL-350-dec-ca is 5. ie. 5 x 1 lot = 5000 premiun. spot price for IVRCL went to 385 and premium of IVRCL-350 now is 20. I would like to excercise the option, I am not interested to take delivery of the shares. Should I need 3,50,000 in my account to excerise this option or 35000 - 5000 (premium) = 30000 or 35000 - (20000 - 5000) = 20000 gets credited in my account...(as like daytrading....).
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  #2  
Old 17th November 2006, 08:06 PM
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ranjani is on a distinguished road
Default Re: Any one knew trading in Options!!!...cant find answer plz. help

Dear sir,

If you square up your position at the premium value of Rs.20/-, then, 20 X 1000 (lot size) =Rs.20,000/-, will be credited to your account.

ranjani.
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  #3  
Old 17th November 2006, 08:59 PM
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rajib333 is on a distinguished road
Default Re: Any one knew trading in Options!!!...cant find answer plz. help

for exercising an option, no money is neededat all in ur account.
also for squaring off, no money is reqd.

for ur query, u cant take delivery of sahares in indian stock exchanges, as they are cash setteled.

thank you.
Rajib.
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  #4  
Old 17th November 2006, 10:10 PM
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Default Re: Any one knew trading in Options!!!...cant find answer plz. help

you get the delta amount. In India, F&o is settled in cash.
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