need help in option(fno)!

narayan78

Well-Known Member
#1
hi there pls help me i am new to option just few questions.

buying option expires as the contract closes.


1. can i sell call option ? when will the contract will expire for selling call option.:confused:

2.in nifty call option is that compulsory that i have to wait till the expirty date to sell . or can i sell it before.

sometimes it is funny for u to read!
but i am a newbie!

advance thanks for u :)
 
#2
narayan78 said:
hi there pls help me i am new to option just few questions.

buying option expires as the contract closes.


1. can i sell call option ? when will the contract will expire for selling call option.:confused:

2.in nifty call option is that compulsory that i have to wait till the expirty date to sell . or can i sell it before.

sometimes it is funny for u to read!
but i am a newbie!

advance thanks for u :)
I dont know much about option but I trade in NIfty Calls/pts
So I thought I can answer ur query.

YEs we can Sell call? ( I think also called short )

WE can sell it before expiry not after exppiry :)

thanx
 

mfire

Active Member
#3
Hallo
We can square off our position any time during the contract in optons. I usually deal in nifty options. I had also similer problelms but by asking those could be solved. Do not hesitate to ask your problems members of this forum are very cooprative.
 

vince

Active Member
#4
Narayan78,

Though your questions are not clear,

You can aquare off your purchased options at any time.

You can short sell an option if you have the required margin in your account.

All F & O contracts expire on the last thursday of the month automatically if not squared off.
 
#5
Hi all !

How does one ascertain the fair value of an option ?

The problem arises when one buys an option and finds it losing value even when underlying has gained !!

Please advise. Thanks.
 

vince

Active Member
#6
The black schloes option calculator is normally used to calculate the fair value of an option.
All you have to do is feed in the required fields.
 
#7
Vince, thanks for your response. B/S calc is very well-known but rarely gives the real picture. I'm sure the market pros who're making regular money from options do not use B/S.
 

vince

Active Member
#8
The b/s is used to determine the fair value of an option. However there will always be a difference between the theoretical and market value because different traders will have a different perception of mainly the volatility and other inputs required to calculate the same.

Please do not be under the illusion that people are making money because of a particular option calculator they use.
 
#10
Hi All,
as I am also new inthis field of options:

please advice am asking the same question:

Question 1-Suppose I buy a niffty call(CA) today can i sell it tomorrow??

question 2- suppose i buy a niffty put(PE) today shall i square off tomorrow??

or shall i have to hold it 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.

I request you all investors to clarify the details : can we or can we not..

all comments are welcomed...

thanx

regards,

rahul_trader
 

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