Basic Call Query

#1
I am an absolute noob , so please forgive for asking a silly question .

If i sell a in the money call at say 11:00 am, after 30 minutes will my call be exercised ? Or is there a time limit before being exercised ?

I mean do we follow European or American system ? :confused::confused:
 
#2
I am an absolute noob , so please forgive for asking a silly question .

If i sell a in the money call at say 11:00 am, after 30 minutes will my call be exercised ? Or is there a time limit before being exercised ?

I mean do we follow European or American system ? :confused::confused:
All our options are European style....meaning they are cash settled (excercised ) by the Exchange only on last day of the settlement. We can buy the call sold ( same expiry and strike price) and square up the trade...but it cannot be excercised by the buyer anytime.

Smart_trade
 
#4
Another query along the line-

Long term held stocks(>1 yr )will be less taxed ?. If I sell in the money covered call on this stock will i be taxed as short term on the sale of the stock or tax will be changed if call is exercised?
 

tradedatrend

Well-Known Member
#5
Shares held for more than 1 year, falls in LTCG, they are totally exempted from tax i.e. 0 taxes for them.

whatever other covered or uncovered call or put you sell or buy, for that you shall be liable to pay tax as per standard procedure, which won't have any relation with shares held for more than 1 year.


Another query along the line-

Long term held stocks(>1 yr )will be less taxed ?. If I sell in the money covered call on this stock will i be taxed as short term on the sale of the stock or tax will be changed if call is exercised?
 
Last edited:

rh6996

Well-Known Member
#8
I have a few very basic queries on Option :

01. If I have taken a directional Long on a stock future on Positional Basis, how do I protect my position overnight from a whip/gap in price through Options? Do I take contra position in Put? If yes what strike : At the money etc. etc. If possible plese do give an example. No issues if a link to an easy to understand is posted.

02. If I go long in Options, what Profit in percentage term do I aim for?
a. For NF/BNF options b. For stock Options
 

tradedatrend

Well-Known Member
#9
1. None of the protection can save you completely without making dent in your capital, better exit on intraday basis. Carrying option is a kind of slow poison, carry option only when you are interested in zero or hero game.

2. This is something which you need to decide at your own, if collectively you can earn 5% or more per month consistently, you shall make good money soon. Whatever market gives simply accept and move on, dont try to fight with market.

I have a few very basic queries on Option :

01. If I have taken a directional Long on a stock future on Positional Basis, how do I protect my position overnight from a whip/gap in price through Options? Do I take contra position in Put? If yes what strike : At the money etc. etc. If possible plese do give an example. No issues if a link to an easy to understand is posted.

02. If I go long in Options, what Profit in percentage term do I aim for?
a. For NF/BNF options b. For stock Options
 

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