Margin required to buy 10 lots of nifty options

#1
What is the margin required to buy 10 lots of nifty options when 5800 PE is at 53?
And the same to sell at 55?

Can I buy CALL & PUT at Strike Price 5800?
Can I buy CALL & PUT at Strike Price 5900?
 

praveen98

Well-Known Member
#2
What is the margin required to buy 10 lots of nifty options when 5800 PE is at 53?
And the same to sell at 55?

Can I buy CALL & PUT at Strike Price 5800?
Can I buy CALL & PUT at Strike Price 5900?
The amount required to buy 10 lots is 10X50X53, to sell these 10 lots@55 requires no additional margin as it will be a square off order.
If you want to sell 10 lots first you may require 10X25K = 2.5 lac as margin.
yes you can buy calls and puts of the same strike....the strategy is called strangle...if i am not wrong....
Please study well before trading in any financial product, options is a more deserving case to study before trade...Be cautious...
Happy trading....:thumb:
 
#5
That means, buying an option and selling at the premium & writing an option (shorting) are both different things. Am I correct?

Can i use strangle strategy in options intraday. It so then can I use strangle strategy in options every trading day?
 
#6
Robin I don't want to disappoint you but make sure you don't use naked options as they are the riskiest and they are the ones that take any options trader out of business. Buying at 53 and selling at 55 is every traders dream but I can assure you 90% of the times you won't be able to achieve it. Play safe and use strangle properly...
 
#7
Robin I don't want to disappoint you but make sure you don't use naked options as they are the riskiest and they are the ones that take any options trader out of business. Buying at 53 and selling at 55 is every traders dream but I can assure you 90% of the times you won't be able to achieve it. Play safe and use strangle properly...
are buying an option & selling at the premium price & naked option both similar things.

What is a naked option? Can u explain with an example?
 

DanPickUp

Well-Known Member
#8
are buying an option & selling at the premium price & naked option both similar things.

What is a naked option? Can u explain with an example?
As you are the same like the once in the other thread:

That answers also counts for your way of asking and behavior:

http://www.traderji.com/options/84850-naked-option.html#post786625

Now just desapear or do your home work your lazy boy and do not level down always this forum with your way of posting always such simple stupid questions.
 

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