I had the same doubt as santhosh regarding exercising options. what happens if you don't buy back the option when it goes against you(even if i have margin moey), will the brokers do it on my behalf?
one more thing, for example: I buy 1 lot(2000) of idfc 180 call at 4, and now idfc is trading at 190, i don't want to sell the option but i want to excercise the call, i want to buy the shares at 180 from the option seller and keep it for future. How can i do this? I have not tried this before, so will there be a button saying buy back shares at 180?
And what if i am the option seller, i will have to buy shares at 190(or current price) from the market and sell it to the option buyer at 180. How are all these things going to happen? Will this be done automatically by the system or should we do it manually?
one more thing, for example: I buy 1 lot(2000) of idfc 180 call at 4, and now idfc is trading at 190, i don't want to sell the option but i want to excercise the call, i want to buy the shares at 180 from the option seller and keep it for future. How can i do this? I have not tried this before, so will there be a button saying buy back shares at 180?
And what if i am the option seller, i will have to buy shares at 190(or current price) from the market and sell it to the option buyer at 180. How are all these things going to happen? Will this be done automatically by the system or should we do it manually?
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