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| Discuss need help in option(fno)! at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Hi Rahul, Yes, you can square off your 'buy' positions before expiry.... |
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#12
16th April 2006, 11:14 AM
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Re: need help in option(fno)!
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Answer to question 1 and 2 is YES. or shall i have to hold it till expiry: This totally depends on you. Whether you want to hold till expiry or square off you position any time till expiry. Second query: if i buy a put and sell it off tomorrow will it be considered as two open positions in the market because it has not reached its expiry date. This will not be considered as two position. You net position is ZERO. meaning your postion is closed. You can square off you position any time on or before expiry. 
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#13
16th April 2006, 11:39 PM
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Re: need help in option(fno)!
thAnks for seniors and juniors for helping out
 i used to buy share (scripts) and then sell it off . i am alowed to go short in certain scripts. But i have to squre it off the same day. i just went through a option guide it's giving different strategies. from that i came to know that. 1. we can buy a CALL OPTION.(CONTRACT PERIOD DEFINED) 2. we can SELL a CALL OPTION.(?) 3. WE CAN BUY A PUT OPTION.(CONTRACT PEIROD DEFINED) 4. WE CAN SELL A PUT OPTION.(?) WHAT I WANTED TO KNOW, IF I SELL A CALL OR PUT I HAVE TO SQUARE IT OFF ON SAME DAY OR CAN I ALLOWED HOLD IT TILL THE EXPIRY. my second question index options are european in nature but how nifty can be sold before expiry.sqare off is possible !  cheers for ur help
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#14
17th April 2006, 01:12 AM
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Re: need help in option(fno)!
Thank u for your prompt replies Amit and Trader07.
As told by Narayan78 am also confused about that Index such has Niffty are European so is it possible to sell them off the very next day........if we do it won't it be considered as two open positons....pls clarify.. comments are a welcome from all members pls Thanx Rahu
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#15
17th April 2006, 08:53 AM
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Re: need help in option(fno)!
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Second: Nifty Index Option is european in nature ..you can Square off postion any time on or before expiry but you can not exercise the European option before expiry. Only American option are allowed to execise any time befor expiry.
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#16
17th April 2006, 08:57 AM
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Re: need help in option(fno)!
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Yes it is possible to sell them off very next day but you can not excercise the europena option before expiry. Don't get confuse between SQUARE OFF and EXECRCISE Squaring off is placing the opposite order to the position you currently hold. Suppose you are a call holder of 100 HLL contracts then you square off your position by shorting 100 HLL calls on the current market price. On the expiration day T, the net position is calculated. Your net position works out to be zero (100 buy calls - 100 sell calls). The only gain/loss from the transaction is the difference in the premiums paid. Exercise of an option contract is exercising your right to buy the security in the case of call or sale of the security in the case of a put. In India, the exercise results in cash settlement of the difference between the strike price as appearing in the contract and the spot price as on the exercise date.
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#17
18th April 2006, 04:14 AM
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Re: need help in option(fno)!
Thank you for a quick answer..If am not confused then let me know am right
in this manner: suppose I buy a niffty call today and if i sell this niffty call tomorrow will this position be considered as closed or it will be considered as two open position till expiry Buy niffty call and selling niffty call as far as stocks are considered I can do this according to you I checked with other people and u are rigth but what about Niffty options does this work out in Niffty also. Every body please comment on this........... Thanx Rahul
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#18
18th April 2006, 07:41 AM
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Re: need help in option(fno)!
You can sell a nifty call/put option any time after purchase. The position will be considered closed or squared off assuming it is the same strike and same series
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#19
18th April 2006, 10:31 AM
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Re: need help in option(fno)!
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#20
19th April 2006, 01:19 AM
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Re: need help in option(fno)!
hi juniors and seniors thanks for u r help!
if u don't mind can u explain (i) squaring off an index(NIFTY) option with example. (ii) excersing an index (NIFTY)option with example. the major difference between them. advance thanks for u
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