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Why trade Options if volume is so low

Discuss Why trade Options if volume is so low at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Originally Posted by SavantGarde Brokerage Is Being Charged Only On The Premium. This Has BeenIn ...


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  #21  
Old 23rd March 2008, 01:30 PM
SGM SGM is offline
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Default Re: Why trade Options if volume is so low

Quote:
Originally Posted by SavantGarde View Post
Brokerage Is Being Charged Only On The Premium.

This Has BeenIn Effect Ever Since The Notification Was Issued By NSE


SavantGarde
Yes Sir,

Works well for ppl still with % brokerage but no change for ppl (like me) paying flat brokerage per contract, no complaints either as it works out to be really low.

Quote:
Originally Posted by beginner_av View Post
not a relief, but a necessity. presently even if you get Rs 800 by writing a call, you pay 80-90 as STT - more than 10%.
From 1st April the stt will be applicable only on premium amount and not on SP+Premium, as is being done currently, unless it was a fools day promise by FM

Savant sir plz confirm.

Regards
Sanjay
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  #22  
Old 23rd March 2008, 02:00 PM
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Default Re: Why trade Options if volume is so low

Hello..I am sargunam, new to this forum. I want to know the utility of and how to use the forum for mutual advantage of members.
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  #23  
Old 23rd March 2008, 06:18 PM
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Default Re: Why trade Options if volume is so low

Quote:
Originally Posted by SGM View Post
Yes Sir,
From 1st April the stt will be applicable only on premium amount and not on SP+Premium, as is being done currently, unless it was a fools day promise by FM

Savant sir plz confirm.

Regards
Sanjay
Sanjay Sir, It is confirmed, but I am not sure of the date yet.
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  #24  
Old 23rd March 2008, 06:22 PM
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Default Re: Why trade Options if volume is so low

jsargunam,

A warm Welcome to the Forum,you have an interesting query,any suggestion by you.

Asish
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  #25  
Old 29th March 2008, 08:21 AM
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Default Re: Why trade Options if volume is so low

Can you guy explain how a Credit Spread is to be done.
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  #26  
Old 29th March 2008, 09:50 PM
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Default Re: Why trade Options if volume is so low

An options strategy where a high price option is sold and a low price option is bought on the same underlying stock.
An example is buying a Apr 50 call on xyz for Rs.2, and selling a Apr 45 call on xyz for Rs.3 assuming xyz is at 40. The net credit received is Rs.1. The max risk is the difference between the sell and buy.
You must have an opinion on where the stock is going and this is the main factor in determining profitability. Also beware of volatility skews.
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  #27  
Old 29th March 2008, 10:16 PM
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Default Re: Why trade Options if volume is so low

similarly it can be done with puts too.
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  #28  
Old 29th March 2008, 11:04 PM
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Default Re: Why trade Options if volume is so low

Quote:
Originally Posted by pasha View Post
An options strategy where a high price option is sold and a low price option is bought on the same underlying stock.
An example is buying a Apr 50 call on xyz for Rs.2, and selling a Apr 45 call on xyz for Rs.3 assuming xyz is at 40. The net credit received is Rs.1. The max risk is the difference between the sell and buy.
You must have an opinion on where the stock is going and this is the main factor in determining profitability. Also beware of volatility skews.
OK got it thks.
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  #29  
Old 3rd April 2008, 01:22 PM
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Default Re: Why trade Options if volume is so low

1.
STT will be charged on premium only from 1 June 2008

2.
Where can i get the book "Option Volatility & Pricing". Its is very expensive at Rs 2500. Is there a cheaper version available?

gatul
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  #30  
Old 3rd April 2008, 11:59 PM
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Default Re: Why trade Options if volume is so low

I've taken the printout of its ebook. Its about 500 pages, so it cost me about Rs. 500.
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