Trading with options

I am new to options trading and find it really confusing. I know that we pay a premium to purchase an option, whether call or put and make profits only after exercising the option which depends on the price of the underlying at the date of expiration. Now in India we can only trade in European options, so is it possible to trade in options on an intraday basis since European options cannot be exercised anytime? I have noticed many investors here do trade in options on a daily basis. How do they do so? How do they make money even before exercising the option?

If you are Buying option, someone is selling it to you... right, similarly once you buy an option you can sell it the very next moment or even carry it till expiry!!

And you can also Short Sell options and cover them at a later date. Selling option is riskier and carries Big margines, it is almost like Future margine!!

so I can buy and sell options similar to buying and selling stock on an intraday basis, is that right? So what is the difference? Which is better buying and selling options on intraday basis or buying and selling stock? Also can u tell me where can I find intraday charts for option prices? There are many websites like moneycontrol, rediff, etc which give intraday charts for stock but none for options.

One more thing let's say I purchase some options. Now when the expiration date comes do I need enough money to exercise the option or will the difference during the squaring off be paid to me without me having to invest further money?

Another question:

suppose I want to earn a Rs. 1000 profit on my trade. Now in stocks what I do is let's say I buy 51 SBIN shares of Rs 1955.90. that makes it a total of Rs. 100,000. when the stock appreciates by 1% i.e. it becomes Rs. 1975.5 I sell all my 51 shares for Rs. 100,748 which gives me a profit of Rs. 748 (excluding brokerage and taxes). So how should I do so in options? I have my own explanation for it. Please tell me if I am right. I think I should by 1295 lots with Rs. 100,000 (considering one lot of SBIN has 125 shares and current price is Rs. 77.25). when the price of the option appreciates by 1% to 78 I sell it. This gives me a profit of Rs. 1010. It doesn't matter if I have bought call or put options. Is my explanation correct?

Pls hv a look volume traded in Stock Option from NSE Bhavcopy. I am sure, you will never venture to Trade them.

If you are interested in Options, try only Nifty Options.

Obviously replying is a waste of time.

so I can buy and sell options similar to buying and selling stock on an intraday basis, is that right? So what is the difference? Which is better buying and selling options on intraday basis or buying and selling stock? Also can u tell me where can I find intraday charts for option prices? There are many websites like moneycontrol, rediff, etc which give intraday charts for stock but none for options.

One more thing let's say I purchase some options. Now when the expiration date comes do I need enough money to exercise the option or will the difference during the squaring off be paid to me without me having to invest further money?

Another question:

suppose I want to earn a Rs. 1000 profit on my trade. Now in stocks what I do is let's say I buy 51 SBIN shares of Rs 1955.90. that makes it a total of Rs. 100,000. when the stock appreciates by 1% i.e. it becomes Rs. 1975.5 I sell all my 51 shares for Rs. 100,748 which gives me a profit of Rs. 748 (excluding brokerage and taxes). So how should I do so in options? I have my own explanation for it. Please tell me if I am right. I think I should by 1295 lots with Rs. 100,000 (considering one lot of SBIN has 125 shares and current price is Rs. 77.25). when the price of the option appreciates by 1% to 78 I sell it. This gives me a profit of Rs. 1010. It doesn't matter if I have bought call or put options. Is my explanation correct?

Just curious to know how much brokerage is required for such option buy.