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?