Options Trading

#1
Hi

I have recently started trading in Options. I want to know if we can actually excercise the option that I have bought. For example, if I purchase Cairn December 2012 Call options at a strike price of 300, then at the expiration can I purchase the actual stock at a price 300? Or I have to only square of the position on or before the expiry date?

Thanks,
Rajeev.
 
#2
All options are Cash settled. So you can't exercise your option to get the shares. If you bought the Cairn 300 Call at Rs5 and the share settles at Rs310 on last day of the series, then you get Rs10 per share on the last day (Tax will be more as the price of 310 is taken while calculating. It is advisable to square off options you buy (Put or Call) by 3:15-3:20 when it would be around Rs 10, as tax would be calculated on 10 and not 310).
 
#3
All options are Cash settled. So you can't exercise your option to get the shares. If you bought the Cairn 300 Call at Rs5 and the share settles at Rs310 on last day of the series, then you get Rs10 per share on the last day (Tax will be more as the price of 310 is taken while calculating. It is advisable to square off options you buy (Put or Call) by 3:15-3:20 when it would be around Rs 10, as tax would be calculated on 10 and not 310).
Hi Friends,
This is rpunjabi69,have been trading in Nifty options for some time.wish to know best way to take position whether buying a call or a put and specially in a situation that we had on friday where nifty was moving a couple fo points up or down( extremely limited range )...
 

DanPickUp

Well-Known Member
#4
Hi Friends,
This is rpunjabi69,have been trading in Nifty options for some time.wish to know best way to take position whether buying a call or a put and specially in a situation that we had on friday where nifty was moving a couple fo points up or down( extremely limited range )...
That needs some more time to educate your self in options. Why not read here to learn some more about options. :)

http://www.traderji.com/options/
 

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