Nifty Option Trading Tutorial Help Me

#1
Hello Everybody,
Anyone here please help me to learn nifty option trading i have few questions on nifty options trading
1.What is strike price?
2.What is in money, out money, etc?
3.What is call option and put option?
4.when option gets expiry?
5.what is square off one can square off options at any time?
6.Can someone play intraday with nifty options and other options?.
7.Do i need lacks of rupees to play with nifty options?

i just have 20,000 rupees now.i use icicidirect as a broker.
 

ananths

Well-Known Member
#3
arre thoda tho mehnath karo bhai...you tube me search karlo..you will get all the answers..

No one has time during trading hours to explain you..You need to wait for market close :thumb:
 

nac

Well-Known Member
#5
You don't have to wait till market close... Check investopedia.com you can get lot more information.

And google "option for beginner", "option for dummies"... It's hard for people to make you understand when you don't even understand the things/terms they use.

4. NSE options expires on last Thursday (Aug'13 contracts expires today)
6. Yes (I would suggest you to stay away from option or even trading until you know something about it. You sound like you don't know much or anything about trading)
7. No

ICICI is expensive. After learning things about trading start with 5k or something. You don't have to put all the money in your trading account (intended) when you are starting...
 

ananths

Well-Known Member
#6
Hello Everybody,
Anyone here please help me to learn nifty option trading i have few questions on nifty options trading
1.What is strike price?
2.What is in money, out money, etc?
3.What is call option and put option?
4.when option gets expiry?
5.what is square off one can square off options at any time?
6.Can someone play intraday with nifty options and other options?.
7.Do i need lacks of rupees to play with nifty options?

i just have 20,000 rupees now.i use icicidirect as a broker.
I suggest do some home work on these and put your views on all of the above points..then people can easily help you and guide. :thumb:
 
#9
Hi Friend answer to ur question are as follow

strike price:Strike Price or Exercise Price - The strike or exercise price of an option is the specified/ pre-determined price of the underlying asset at which the same can be bought or sold if the option buyer exercises his right to buy/ sell on or before the expiration day.

explain in-the-money, at-the-money, out-of-the-money?
An option is said to be 'at-the-money', when the option's strike price is equal to the underlying asset price. This is true for both puts and calls.

A call option is said to be in-the-money when the strike price of the option is less than the underlying asset price. For example, a Sensex call option with strike of 3900 is 'in-the-money', when the spot Sensex is at 4100 as the call option has value.

The call holder has the right to buy a Sensex at 3900, no matter how much the spot market price has risen. And with the current price at 4100, a profit can be made by selling Sensex at this higher price.

On the other hand, a call option is out-of-the-money when the strike price is greater than the underlying asset price. Using the earlier example of Sensex call option, if the Sensex falls to 3700, the call option no longer has positive exercise value. The call holder will not exercise the option to buy Sensex at 3900 when the current price is at 3700.

what is call option?

A call option gives the holder (buyer/ one who is long call), the right to buy specified quantity of the underlying asset at the strike price on or before expiration date.

The seller (one who is short call) however, has the obligation to sell the underlying asset if the buyer of the call option decides to exercise his option to buy.

what is put option?

A Put option gives the holder (buyer/ one who is long Put), the right to sell specified quantity of the underlying asset at the strike price on or before a expiry date.


i understand ur confusion with these question bcoz even i was in ur place 3 months back ........... i will suggest u to learn basic option trading.. read some basic option book.. regards
 

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