Want to learn Options Trading

iamtrr · #41 2nd September 2006, 02:32 PM

Quote:

Originally Posted by Karuna

Hello all,

I have been trading in options since Nov last year. The first 7 months were absolutely profitable, but since June I have been suffering only losses. Being a part of this forum and of course after the losses suffered, I have realised that I should put in much much more of study than I have done till now, which has been, I admit, near to nil. I have now decided to start studying and wish to find like minded souls who can be my co-students where we can go on the road of learning by helping each other.

Of course I also want to request seniors who can guide us with their valuable lessons and lead us on the road. Where should one start ? What topics ? There is so much information around it is really confusing, I really need to know how to go about it step by step.

Karuna

dear Karuna
I must be the youngest baby of options as only yesterday i did my first options trade of hindlever 240call sep at Rs7.60. is it good price and my broker india infoline charged 3.25% brokerage(Rs0.2476) is it the right brokerage?
I am also equally ken in looking for like minded people to sahre the lessons on options trading
rgds
TRRajhagopal

mkpandey · #42 24th September 2006, 11:11 AM

hi,
profits does not make youa successful trader,it losses that makes you studious, forces you to look back at your mistakes,.dont repent your losses,forget that,try to accumulate all your experience,and see what went wrong and why,. remeber no one becomes successful without failures. it is rule of stock market ,first it gives you ,later it takes from you whatever it has given to you,if despite this you stay in market,you will start reaping profits.
remeber every day is a new day,every strategy is a flaw.it experience that matters.

adeep_b · #43 24th September 2006, 11:44 AM

Dear Indiainfoline user,
Please take into notice how ur brokerage was calculated,

[(Strike Price+Premium Price)*lot size] * 0.10%

In ur case it comes to 247.60 Rs for 1000 shares which exact...

Regards
Adeep B.
Branch Manager IndiaInfoline

spattavayal · #44 24th September 2006, 07:46 PM

Hi

I am a new enter to this forum . I have never done option trading and have been understanding its basics.
I have a question. If I buy an in-the-money STOCK option contract and exercise it , should I have to buy the underlying stock ? I have read that normally if I exercise a stock option , I must buy the underlying stock. But also read that in NSE , exercise of stock option contract means cash settled and no need to buy the stocks. Only the difference ( strike-spot) are paid .
Is it right ? I am confused . Please help.
Regards
Krishna

scorpio155 · #45 24th September 2006, 11:43 PM

spattavayal you are right about F and O being cash settled.

SO u buy a option and when u exercise that, you will get the cash and you would not have to take the delivery of the stocks.

Have a great day.

Agilent · #46 24th September 2006, 11:55 PM

Quote:

Originally Posted by spattavayal

Hi

I am a new enter to this forum . I have never done option trading and have been understanding its basics.
I have a question. If I buy an in-the-money STOCK option contract and exercise it , should I have to buy the underlying stock ? I have read that normally if I exercise a stock option , I must buy the underlying stock. But also read that in NSE , exercise of stock option contract means cash settled and no need to buy the stocks. Only the difference ( strike-spot) are paid .
Is it right ? I am confused . Please help.
Regards
Krishna

You may have got yr answer , but see this link also (specially the section 'when shd u exercise an option')
http://www.outlookmoney.com/scripts/...ArticleID=2224
written 5 yrs ago, but still quite useful.

The intention was that equity options willl be delivery-settled at some time, but that is still pending

Am I right Vince/Ivan ?

AGILENT

ivanboesky · #47 25th September 2006, 10:17 AM

Stock options may still be delivery settled at some point in the future. Too much difference of opinion among 'experts' whether market volatility will be reduced or enhanced!

vince · #48 25th September 2006, 01:54 PM

Speaking for myself I prefer cash settlement over delivery.

Imagine having excercised an option (because you could not square off due to illiquidity) then having to wait for delivery to sell the shares by which time who knows what the price may be and pay double the transaction costs for the same.

spattavayal · #49 25th September 2006, 07:54 PM

Quote:

Originally Posted by scorpio155

spattavayal you are right about F and O being cash settled.

SO u buy a option and when u exercise that, you will get the cash and you would not have to take the delivery of the stocks.

Have a great day.

Thanks a lot you for the answer.
***** has great option quotes for US stocks, however does not have for indian stocks :-( . Are there like OptionExpress in India who are specializing in options trading ?
Thanks

shamim · #50 25th September 2006, 09:34 PM

Hi Option Traders,

I would suggest that anybody seriously thinking about option trading, invest in this book and read it thoroughly.

Options as a Strategic Investment by Lawrence McMillan.

Don't feel intimidated by the option graphs; try to absorb the theory behind all the option strategies and then test them out in a practice account before putting the real money at risk.
I would highly recommend paying close attention to the " Follow-up Action" section in every chapter. It is almost always possible to salvage an option under water with some kind of repair strategy if you have allowed yourself some time before expiry.
Happy trading and thanks,
Shamim

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