put option help

#1
Well the problem is
let us assume hindalco is trading around 165 to 170 and its current price is 171
in put option there is PE-175 at 7.50 ..... another PE-180 at6.20 ....
another PE-185 at 8.40... PE-170 at 3.80 ...PE-165 at 12.20..

now my qus..?

1) do we buy a put option or sell a put optin? i.e. if i choose PE-175 at 7.50 will i have to buy this or sell this option?
2) in the above example which one is the best put option?
 

rkkarnani

Well-Known Member
#2
Well the problem is
let us assume hindalco is trading around 165 to 170 and its current price is 171
in put option there is PE-175 at 7.50 ..... another PE-180 at6.20 ....
another PE-185 at 8.40... PE-170 at 3.80 ...PE-165 at 12.20..

now my qus..?

1) do we buy a put option or sell a put optin? i.e. if i choose PE-175 at 7.50 will i have to buy this or sell this option?
2) in the above example which one is the best put option?
Hindalco Put option cannot be a PE but has to be PA!!
Before buying an Option you need to be clear about your view on the direction of the market/ script and that would decide whether to buy Put option (Bearish) or Sell a Put Option (Bullish).
When there is no view about the direction or bias of the market you either do not trade at that time or use hedged position.
Please dont mind but your question makes one feel that you are still lacking the "basics" of Option. Please do go through a few articles on Option basics which are available very easily on the Net, just Google it!!
All the best.
 
#3
THANKS FOR YOUR ADVICE
I Guess ur rite,few dayz back i purchased few lots and on 25 th i ended up with nothing.I checked some articles on F&O basics,and i guess an amateur like me should firstly trade in cash market , and keep an OPTION as an option for future.
 
#4
It will be better if you ask option related questions in existing Option Forums , where learned traders like AW10 are participating.

Its better horse goes to water than the other way round.