Option Basic Questions Pls

Hello All,

I am very new to Options Trading. Can you please explain few basic questions below:

Here I have taken 2 days of Suzlon information. 13th and 17th NOV.

On 13-NOV-09 SUZLON: 67.40 (Current Price)

BUY CALL@ 65 PREMIUM= 5.55 * 3000 QTY = 16650 26/11/2009 EXPIRE
BUY CALL@ 70 PREMIUM= 3.05 * 3000 QTY = 9150 26/11/2009 EXPIRE
BUY CALL@ 75 PREMIUM= 1.65 * 3000 QTY = 4950 26/11/2009 EXPIRE

On 17-NOV-09 SUZLON: 73.10 (Current Price)

BUY CALL@ 65 PREMIUM= 9.00 * 3000 QTY = 27000 26/11/2009 EXPIRE
BUY CALL@ 70 PREMIUM= 5.25 * 3000 QTY = 15750 26/11/2009 EXPIRE
BUY CALL@ 75 PREMIUM= 2.75 * 3000 QTY = 8250 26/11/2009 EXPIRE

On 13th NOV, Suzlon running@ 67.40/-.
On 17th NOV, Suzlon running@ 73.10/-.

1. On 13th NOV, Suzlon running@ 67.40/-. So can I buy a Call@65 though the current price is [email protected]/- which is hight than the strike price? Will it be having any advantage if I buy a Call where the Strike Price is less than the Current Price?

2. Lets say on 13th I did BUY CALL@ 65 PREMIUM= 5.55 * 3000 QTY = 16650 26/11/2009 EXPIRE. Remember Suzlon running@ 67.40/-.

Will I get profit of 3.45/- premimum on each share if I sell the call on 17th?

3. By looking on both dates, can you explain me the best option that would have taken on 13th to get good profit?

4. I have account in ShareKhan, but not sure how to do the Options Trading. Can anybody provide 2 screen shots on how to buy a call and sell a call pls pls?

Thanks,
Venkat

I will try and answer that later... but before I do that its better you understand the basics of options.. In the money, at the money, out of money, time decay and other parameters and how the options' value is derived before you actually buy anything.

Here is some materiel (mostly grabbed from web)
http://www.traderji.com/options/32889-basics-options.html

Also ask your broker about the charges to calculate your breakeven.

Thanks alot! Will start off the journey with this material

Thanks Once again...

Can you please reply to my questions pls? I would like to start off trading in Options

Thanks,
Venkat

will nifty reach 5130 today?

5110 is great Resistance level. But there is a chance to reach 5130 After 2PM

Wait and watch..............Happy Earnings...................

Vinothbabu.

All Learn to earn....But I earn to Learn...........That is my life..........