Got Stuck Need Guidance

[raka2905]

Hello,

Can someone familiar with Geojit Trader's Terminal help me? I am new to derivatives. Last week I did my first trade on options. Now I have a "PUT' (buy) open position on Geojit for Nov272008 for a strike price of 2600. I thought I lost all of the premium. But if tomorrow, NIFTY falls below it, I would like to exercise it. But in Geojit's trader terminal, I don't see any mechanism to exercise it. The helpline says that I have to do a sell against the open position. Is this same as exercising it ? Before what time I should do this?


Regards

 

[terminator_123]

Hello,

Can someone familiar with Geojit Trader's Terminal help me? I am new to derivatives. Last week I did my first trade on options. Now I have a "PUT' (buy) open position on Geojit for Nov272008 for a strike price of 2600. I thought I lost all of the premium. But if tomorrow, NIFTY falls below it, I would like to exercise it. But in Geojit's trader terminal, I don't see any mechanism to exercise it. The helpline says that I have to do a sell against the open position. Is this same as exercising it ? Before what time I should do this?


Regards

Selling is not same as exercising. Since options on nse are cash settled, if nifty closes below 2600 tomorrow, I guess u will b automatically credited the difference.. If it closes above 2600 Ur option has zero value..

 

[raka2905]

Selling is not same as exercising. Since options on nse are cash settled, if nifty closes below 2600 tomorrow, I guess u will b automatically credited the difference.. If it closes above 2600 Ur option has zero value..

It is still not clear to me. If I am 'in the money' tomorrow , when market closes, will it be exercised by me, automatically? Don't I have to give specific request to exercise before closing time ? Is this the same with all brokerage firms? I thought in ICICIdirect, you need to click on to 'exercise' tab. Pl. reply by tomorrow morning.

Regards

 

[terminator_123]

To be frank I never waited till expiry date for exercising... In India square-off of options is same as exercising.. so all u have to do is sell Ur option tomorrow which if it is in the money will still have intrinsic value... So do SELL it tomorrow ....

some more deatils are given here:
http://www.traderji.com/options/25073-options-trading-excercising-regarding.html

 

[raka2905]

Thanks for the timely help.

Regards