How to settle Options?

Discuss How to settle Options? at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Yes correct. Nifty 6200 Call, if Nifty ends at 6200 also, the value of it ...


Go Back   Traderji.com - Discussion forum for Stocks Commodities & Forex > THE MARKETS > Derivatives > Options
Register Blogs FAQ Chat Room Search Today's Posts Mark Forums Read


Welcome to the Traderji.com - Discussion forum for Stocks Commodities & Forex.

You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features.

By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features.

Registration is fast, simple and absolutely free so please, join our community today!

If you have any problems with the registration process or your account login, please read the FAQ.

Reply
 
Thread Tools
Sponsored Links
  #71  
Old 8th May 2008, 04:19 PM
Member
 
Join Date: Nov 2007
Location: Coimbatore
Posts: 41
leo_3455 is on a distinguished road
Default Re: How to settle Options?



Yes correct. Nifty 6200 Call, if Nifty ends at 6200 also, the value of it will be 0 and I dont think anyone will give 1 to buy, unless they want to lose Rs. 1.

Reply With Quote
  #72  
Old 10th May 2008, 12:02 AM
Member
 
Join Date: Apr 2008
Posts: 5
rakesh_29 is on a distinguished road
Default Re: How to settle Options?

Quote:
Originally Posted by leo_3455 View Post
Yes correct. Nifty 6200 Call, if Nifty ends at 6200 also, the value of it will be 0 and I dont think anyone will give 1 to buy, unless they want to lose Rs. 1.
Sanju,

Whenever you sell any Option, you should be worried only if the Option becomes ITM. If it is an Index Option, this worry is only on expiry day since if the Index Option sold by you becomes ITM before expiry date, it cannot be exercised by the buyer. So, at expiry, if your Option is ITM, you have to worry about squaring up by buying, or letting it expire, with exchange doing the settling.

If, on expiry, the Option sold by you is still OTM, you get to keep all the premium received on selling. Lucky YOU!

But don't tell me NIFTY 6200 call can be sold for rs 50!!! With NIFTY around 5000 today, a 6200 Call would not be over RS 1-2, which is not worth selling, considering the commission costs.

-Rakesh

Reply With Quote
Sponsored Links


Reply


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT +5.5. The time now is 09:01 AM.

Indemnity, Disclaimer & Disclosure Notice:
• By visiting Traderji.com you indicate your acceptance of our Forum Rules Disclaimer & Disclosure and indemnify Traderji.com, its associates and related parties of all claims howsoever resulting from the usage of the forum.
Disclaimer: Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. Traderji.com will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
Disclosure: The information in this forum is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.
• All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy of information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. If you find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.
 


Copyright © 2001 - 2008, Traderji.com All Rights Reserved.

Recommended Websites - www.TradersEdgeIndia.com - www.TradingPicks.com - www.HiFiVision.com - www.MasterOfTrading.com - www.NotebookTalk.com