LEAPs in Indian options

[p81]

Thanks Vikas for the reply.
But after square off ,will i become a writer and have the risk of exercising the right on me? and if not than who will become the writer?

 

[AW10]

With square-off you just close your original position.
so originally, if were buyer, then close the RIGHT that u gained with buying an option.
If originally, you sold and option (i.e. you were writer then where selling without owning it), with squareoff, you can close your OBLIGATION that was created by option writing.

Hope it is clear.
Happy Trading

 

[p81]

Thanks Aw10 ,now its clear.

 

[brainz]

With square-off you just close your original position.
so originally, if were buyer, then close the RIGHT that u gained with buying an option.
If originally, you sold and option (i.e. you were writer then where selling without owning it), with squareoff, you can close your OBLIGATION that was created by option writing.

Hope it is clear.
Happy Trading

AW,

I bought MINIFTY 4900 Put for Nov 26th series, i'm ITM, can i square it off by selling any In the money put or i have to sell exactly 4900 PUT for November 26th? Thanks.

 

[AW10]

To square-off your position you have to sell the same instrument, same strike and same expiry.Your put should be worth 200+ easily. You can't excercise this before expiry so only way to book your profit is by squareoff in open market.

by the way, Why are you trading in MiNifty options ? They are illiquid. For 4900 put currently has a buyer who is ready to pay 101 rs.. and a seller are asking for 380 rs.
So if you go to squareoff you will not get right value (i.e. 200+) but will get 100.

Plz stay away from such illiquid counter and stay with Nifty options.
If account size is problem, then plz build it thru other income/ savings etc and then trade in options.

It is leaveraged instrument and you can very easily loose major part of your account.

happy trading.

 

[brainz]

To square-off your position you have to sell the same instrument, same strike and same expiry.Your put should be worth 200+ easily. You can't excercise this before expiry so only way to book your profit is by squareoff in open market.

by the way, Why are you trading in MiNifty options ? They are illiquid. For 4900 put currently has a buyer who is ready to pay 101 rs.. and a seller are asking for 380 rs.
So if you go to squareoff you will not get right value (i.e. 200+) but will get 100.

Plz stay away from such illiquid counter and stay with Nifty options.
If account size is problem, then plz build it thru other income/ savings etc and then trade in options.

It is leaveraged instrument and you can very easily loose major part of your account.

happy trading.

Hi AW, Thanks for the reply, really appreciate it.

yeah, i agree, im stuck with lack of liquidity.. I learnt my lesson, i will always trade in Nifty options instead of Minifty.

Thanks,
brainz

 

[samip2u]

any update on the LEAPS in Nifty ...?

Are they still existent.... any if yes, whats the liquidity churning in those instruments today ?