Any one knew trading in Options!!!...cant find answer plz. help

[rickyric_ny]

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....).

 

[ranjani]

Dear sir,

If you square up your position at the premium value of Rs.20/-, then, 20 X 1000 (lot size) =Rs.20,000/-, will be credited to your account.

ranjani.

 

[rajib333]

for exercising an option, no money is neededat all in ur account.
also for squaring off, no money is reqd.

for ur query, u cant take delivery of sahares in indian stock exchanges, as they are cash setteled.

thank you.
Rajib.

 

[anjanr]

you get the delta amount. In India, F&o is settled in cash.