doubt on call and put

#1
Hi Experts ,

Plz clarify my doubt on call and put options.

I know that in call option first we will buy and sell when price increases and in put option we will buy and sell when price decreases .

Iam totally confused. my doubt is cant i sell the call option first and buy later if price decreased please clarify my ignorance

thank u
 

veluri1967

Well-Known Member
#2
Hi Experts ,

Plz clarify my doubt on call and put options.

I know that in call option first we will buy and sell when price increases and in put option we will buy and sell when price decreases .

Iam totally confused. my doubt is cant i sell the call option first and buy later if price decreased please clarify my ignorance

thank u
You can. But before that, it is better to understand the risk involved in selling first and buying later.
 

prasham

Active Member
#3
Short selling options nakedly would land you into deep trouble. I suggest you learn some standard strategies that professional option traders use. Option trading is vastly different than stock trading and here you can burn your hands very easily if you aren't aware of the technicals.

Go to hdfcsec.com and check the FAQ there. It has explanation on the standard terminology and also explains basics of option trading. Once you have understood all that various trading strategies and after you've done all that come in the market to burn your hands ;)
 
Last edited:

rkkarnani

Well-Known Member
#6
Hi Experts ,

Plz clarify my doubt on call and put options.

I know that in call option first we will buy and sell when price increases and in put option we will buy and sell when price decreases .

Iam totally confused. my doubt is cant i sell the call option first and buy later if price decreased please clarify my ignorance

thank u
Options are just like Futures as far as Buying and Selling is concerned!! You can short sell and cover later!! The difference is the risk involved!!! As suggested by others.
Here is a link to a Word file which can tell you the basics of Options!! Have a look :
http://www.4shared.com/file/44137389/8397b5a5/Step_By_Step_Learning.html
 

prasham

Active Member
#7
Prasham

I was looking at hdfcsec.com and this side is really not to recommend.

My question would be : Why do you want to make advertisement for them ? The page is nothing else then an advertisement page !

Why don't you recommend www.investopedia.com or really good links ? Why ?

I mean, you already showed links from investopedia today in other threads. You not can say, you do not know them !

So why do you behave like that ?

DanPickUp

Someone else had suggested it in some other thread. I looked on it and found interesting. Hence I suggested it here.

Moreover I do agree that I have suggested investopedia in some other thread as its general opinion is great but then I personally haven't read any article on basics of Option Trading which is why I didn't suggest it for basic understanding. I hope I have clarified :)
 
#8
Im very new with this site and as I have read this post that's I just wants to share something to you that to know more about options u may login to www.hdfcsec.com in their homepage investor option>>>derivative option>>> knowledge centre>>> basics & advanced options are available which would be very helpful for beginner in the market.
 

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