An option Query

G

Gurmukh Singh

New Member
#1
#1
Dear all , I want to know a thing hope you wiill help me in understanding the concept.

Suppose share of abc is trading @ rs.152. the value of put of strike price rs.155 is rs.6 (premium) the lot size is 1000 .Suppose I bought that put Rs.6*1000=6000 then suddenly the share price goes up to rs.180 near the expiry date. Now the value of my put is nil. Ok this is fine. I have lost rs.6000.

But now the question arise If I remain unable to sell that put ( Noboby would want to buy that put) that means first I have to buy 1000 shares of abc @rs.180 and then sell it to @rs.155 that means loss of around rs.25*1000=25000.

The basic question is " is it necessary to sell the put or call (the case may be) which i have bought" or simply let it expried nill and have to pay nothing more than premium amount.

And also where can i Check the delta gamma theta values of nifty .

Hope you will understand what i want to say
thanks
 
N

novicetraders

Active Member
#2
#2
Even i am a learner...
But as far as i know.... Once buying PUT @ 6 RS... Your max loss would be the same...
So 6*1000 = 6000 would be your loss... Even though u dont sell and the value becomes 0 at expiry.
 
manojborle

manojborle

Well-Known Member
#3
#3
Gurmukh Singh said:
Dear all , I want to know a thing hope you wiill help me in understanding the concept.

Suppose share of abc is trading @ rs.152. the value of put of strike price rs.155 is rs.6 (premium) the lot size is 1000 .Suppose I bought that put Rs.6*1000=6000 then suddenly the share price goes up to rs.180 near the expiry date. Now the value of my put is nil. Ok this is fine. I have lost rs.6000.

But now the question arise If I remain unable to sell that put ( Noboby would want to buy that put) that means first I have to buy 1000 shares of abc @rs.180 and then sell it to @rs.155 that means loss of around rs.25*1000=25000.

The basic question is " is it necessary to sell the put or call (the case may be) which i have bought" or simply let it expried nill and have to pay nothing more than premium amount.

And also where can i Check the delta gamma theta values of nifty .

Hope you will understand what i want to say
thanks
Click to expand...
These values you are talking about are not of nifty but options(call/put) of various
Option Greeks can be found on nseindia.com
You can download Option Oracle, it is a free software which will be very helful in option trading.
 
praveen98

praveen98

Well-Known Member
#10
#10
Gurmukh Singh said:
Dear all , I want to know a thing hope you wiill help me in understanding the concept.

Suppose share of abc is trading @ rs.152. the value of put of strike price rs.155 is rs.6 (premium) the lot size is 1000 .Suppose I bought that put Rs.6*1000=6000 then suddenly the share price goes up to rs.180 near the expiry date. Now the value of my put is nil. Ok this is fine. I have lost rs.6000.

But now the question arise If I remain unable to sell that put ( Noboby would want to buy that put) that means first I have to buy 1000 shares of abc @rs.180 and then sell it to @rs.155 that means loss of around rs.25*1000=25000.

The basic question is " is it necessary to sell the put or call (the case may be) which i have bought" or simply let it expried nill and have to pay nothing more than premium amount.

And also where can i Check the delta gamma theta values of nifty .

Hope you will understand what i want to say
thanks
Click to expand...
HI Gurumukh singh,
You can simply let it expire...as you are the option buyer you have no obligation , you have only right to exercise/let it expire as it is....please go through the following link to download the information and knowledge about the options http://nseindia.com/education/content/module_ncfm.htm
All the Best,
praveen
 
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