|
|
| Discuss Beginner question at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Consider this situation. Today DLF-CA-620 LTP is 67 , and DLF lot size is 400 ... |
|
|||||||
| Notices |
 |
|
|
Thread Tools |
| Sponsored Links |
|
#1
23rd March 2008, 01:58 PM
|
|||
|
|||
Beginner question
Consider this situation.
Today DLF-CA-620 LTP is 67 , and DLF lot size is 400 , so my Call-Option purchase cost will be 67*400 = 26800 . And tomorrow DLF-CA-620 LTP is 75 , so to get profit I have to sell this option. If I sell this option, I will get profit of 8*400 = 3200 . And now I am free of all rights and obligations ? Is this selling the same as writing a call option ? And, Is writing a call option is conceptually same as short-selling an equity ? 
|
|
#2
23rd March 2008, 06:17 PM
|
|||
|
|||
|
Re: Beginner question
pokrate,
In your case you are squaring off your previous position & in 'Writing' you Sell first then square of the same by buying later. Asish
|
|
#3
23rd March 2008, 08:27 PM
|
|||
|
|||
|
Re: Beginner question
Quote:
Now, what will be the total cost involved in say Buying a Call of DLF ? And say I want to sell the call same day to get profit , what will be the cost involved ? Please explain with an example. I am too much worried about the risk involved  .
|
|
#5
23rd March 2008, 11:55 PM
|
|||
|
|||
|
Re: Beginner question
Quote:
its half incase we square off on the same day @ ICICIDirect. PS : Only for future and not for Option @ ICICIDirect Nitin Last edited by nitinku5021a; 23rd March 2008 at 11:57 PM. Reason: Added PS
|
|
#6
24th March 2008, 12:23 AM
|
|||
|
|||
|
Re: Beginner question
Quote:
|
| Sponsored Links |
|
|
|
| Bookmarks |
| Thread Tools | |
|
|
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.
