Query regarding Square off

Hi All,

For example I have bought an TISCO call option with strike price 490 and if by end of 28th sept I am not able to find a buyer for my option and also assume the option is in the money. And I do not like to exercise the option. Would this option be worthless if I dont square off or excercise or will the broker take care of that.
I have contacted ICICI the online trading that I use, and the customer service informed me that the appication would square off the option and deposite the money. If anyone of you have faced such problem and also do anyone think that the customer service person is wrong bout the icici direct please let me know.

thanks in advance.
Ravi

The exchange automatically exercises all in the money options. ICICIDirect has no reason to take credit for that.

Can you please clarify , the difference between exercising an Option and Exercising a Future. In futures I know that we do have to buy the underlying stocks, what happens in case of Options.

thank,
Ravi

In India , Futures will be settled in cash only . There is no need to buy stock . So on expiry date , you will get the difference amount .

Naresh

By the Way , Why you dont like to excercise your in the money option ????

Naresh

If you square of an option, you can fetch more money.Like in the above one 490 call buyers would buy for 40 or 50 even if TISCO spot price is less(assuming there is time for the option to expire). Hope it makes sense.

thanks for clarification.
Ravi

Basically implied volatilities increasing...

Hi
I was trying find the procedure for exercising a stock option . Sharekhan customer service could not answer my queries . Could someone please explain the procedure for exercising the american options.

Thanks

Help needed....Would like to know on excerising an option should I need a Full cash in my account.

say for example: spot price IVRCL 340

I am buying IVRCL-350-dec-ca is 5. ie. 5 x 1 lot = 5000 premiun. spot price for IVRCL went to 385 and premium of IVRCL-350 now is 20. I would like to excercise the option, I am not interested to take delivery of the shares. Should I need 3,50,000 in my account to excerise this option or 35000 - 5000 (premium) = 30000 or 35000 - (20000 - 5000) = 20000 gets credited in my account...(as like daytrading....).

Re: Query regarding Stop Loss

Hi to everybody!
I am just entering into stock market. Last 4 months I am doing daily trading. (Call it Intra Day). Still I don't know about options and derivatives. I am doing trading trhough 5paisa and Sharekhan (two sharks in the ocean_). There software not good of design and customer friendly. I encounter certains problems, could any experienced learned member explain me the following perstering questions.?
1. I understand Stop loss means when buy limit order it should be less than order price and for sell it should be greater than the order price. Eg:: Sail LTP 89 Open price is 92 During market time one enter such as 300 units at 93 and Stop loss enterd as 90.? Please explain after accepting order at 93.25 and the price goes little up to 94 and then coming down to 90 and then it goes up again to 90.15 finally it starts its course down to 86. In this example the first time when it approached to 90, the stop order should have been executed or not. Or should I have to modify to sell at market price. In the example taken, it has not sold at 90 or even less i.e second time when it fall below 90. Can anyone explain me correctly. K.V.vighnesh email: [email protected] Chennai.