Option Tips for May

[anup0212]

what does this sell one call of 2700 means ?.

 

[tomjerry]

sell one lot/contract of call option which has strike price 2700 of the given stock!

 

[anup0212]

thanks tomjerry ! but in option you cannot sell unless you buy the contract first ...may i correct or not ?

 

[tomjerry]

In the stock market: [1] you can buy first then sell it OR [2] sell first then buy it (this is called short sell).

First you can buy or sell everything(stock, future, option) in stock market except specific stocks which are in "trade to trade" category! Selling option requires almost same margin as its future.

 

[anup0212]

thanks TJ , but my broker told me short sell in option is not allowed ...i am confused now...

 

[tomjerry]

your broker is not only one in India, there are more than 50 brokers in India. Change the broker if you want to short sell option and if your broker is not allowing you to short sell option.

 

[anup0212]

thanks TJ ...i want to know from viewers does any other broker provides the SS in option?..atleast not is Sharekhan...which I am holding ....

 

[tomjerry]

I am trading with RKSV, they are allowing to short sell option. RKSV charges Rs.1947+Taxes fixed brokerage for unlimited trading in Cash Equity(Stocks) and F&O(Futures & Options). Normally RKSV is for high volume trader. If your volume is low then Zerodha is affordable for you, so you can ask Zerodha for this facility of short sell option. (I am using sharekhan for charting purpose only, but not trading in sharekhan).

You can contact them by any of the following way:

Both brokers are available in traderji forum, where you can also contact them(their website links: RKSV & Zerodha)

Forum links:
RKSV: http://www.traderji.com/brokers-trading-platforms/65135-rksv-unlimited-online-trading-1947-a.html

Zerodha: http://www.traderji.com/brokers-trading-platforms/47790-zerodha.html

Other costs are as applicable except brokerage!

 

[gunsho]

thanks TJ ...i want to know from viewers does any other broker provides the SS in option?..atleast not is Sharekhan...which I am holding ....

I know people using sharekhan and writing/selling options without any restriction. May be you should ask him what you need to do to short options. Either the person you are talking is not aware, or he might have realized you don't have enough margin to do so. As pointed in above post, there are many other brokers available. You could also check the FAQ or tutorials in sharekhan about this.

 

[comm4300]

I am trading with RKSV, they are allowing to short sell option. RKSV charges Rs.1947+Taxes fixed brokerage for unlimited trading in Cash Equity(Stocks) and F&O(Futures & Options). Normally RKSV is for high volume trader. If your volume is low then Zerodha is affordable for you, so you can ask Zerodha for this facility of short sell option. (I am using sharekhan for charting purpose only, but not trading in sharekhan).

You can contact them by any of the following way:

Both brokers are available in traderji forum, where you can also contact them(their website links: RKSV & Zerodha)

Forum links:
RKSV: http://www.traderji.com/brokers-trading-platforms/65135-rksv-unlimited-online-trading-1947-a.html

Zerodha: http://www.traderji.com/brokers-trading-platforms/47790-zerodha.html

Other costs are as applicable except brokerage!

PLUS Zerodha provides intraday margin for writing options [until 3:00pm].

rgds.