Nifty Call/Put in Intraday????

I

indiabulz

Guest
#1
Hello Experianced Traders,

Namaskar!!! I started trading 6 months back. Recently i discovered trading in Options to be quite profitable. Till now i had been trading in Cash and nifty futures(in intra). With over 90% accuracy in Nifty futures Intraday i am making decent profits in Futures itself. Now i am planning to do nifty Call/Put due to high leverage and calculated risks.

I have a few doubts which i think should be clarified in this forum.

1) Can Nifty Options be traded in Intraday. By default Index options are CE which means they can be excercised only upon expiry. But i saw some companies on Web who give Nifty call/put tips in Intraday. How is this possible???

I tried once trading nifty Call in Intra. I bought 1 lot of at-the-money Nifty 5200-CE @ 33 & sold the same day at 38. Nifty CMP was 5218. Theoretically i made a profit of Rs.250/lot. But My A/c showed a profit of Rs.500 & Loss of Rs.650. Where did this profit and loss come from. I did nothing else that day. My broker also couldnt explain this to me. So plz plz give me an explaination how this can happen.

2) How much margin is required for Trading Nifty & Stock options in Intraday.

3) Is there any extra brokerage or charges needed to be paid for trading options.

I have few more queries which i would raise later. Presently i would be greatly indebted if my doubts are cleared. Thanks in Advance & Happy new year!!!!
 

anuragmunjal

Well-Known Member
#2
hi

1. yes u can trade options intraday as u trade futures. there is no way ur account can show a loss in the abovementioned trade unless u r paying more commission than ur profit. if ur broker cannot explain why ur statement is showing a loss, change the broker asap.
2. if u buy a call or put, u have to pay just the value ie. in this case u have2 pay 33 * 50 = 1650 rs. in case ur selling an option, u have 2 pay the same margin that u pay while selling nifty futures minus the premium u received.

3. the charges and brokerage u pay in trading options is less than what u pay in trading futures as all the charges are calculated on just the premium value unless u leave the options for expiry.

hope this helps
 

ranj_2k

Active Member
#3
1) Yes Nifty Options can be traded Intra day and position can be squared off any time. On the expiry of FNO i.e. on last Thursday of the month, position will be square off automatically on the closing figure of Nifty Index.

Regarding your intra day trading of Nifty 5200-CE your profit calculation is right. Just you have to reduce the brokerage, STT and applicable taxes.

2) For buying calls and puts you require only premium amount as margin..

3) For brokerage you have to consult your broker. It is different from Cash and Future.

Happy trading.
 
#4
Traders..

whats the key difference in trading between Nifty options andNifty Futures.? Please explain with respect to...

Obligations
Risk involved
Margin requirements
and other related imp. stuffs.

I have been tradiing into Options... just wanted to ezxpand my horizon towards Futures.
Thank You.
 

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