Upstox - RKSV - Trade in Rs 20 Max

[RKSV]

Re: RKSV - Unlimited Online Trading @ 1947/-

I agree.

my question was little different ......ok...giving you an example....please tell me ...

Can I place a NIFTY option CALL buy order which has expiry date on 27-Decm-2012 with strike price 5200 ?


Why I'm asking this ? You know one of my friend told that you can not place option call buy order 3 months in advance expiry date....This is the reason I am asking whether there is any such restrictions in order placement.

Yes, why not. No such restriction, probably your friend was confused as to whether option products are created 3 months in advance of current trading month. As long as a future exists for that specific month/year, option can exist.

http://www.nseindia.com/marketinfo/fo/foquote_printer.jsp?key=OPTIDXNIFTY27DEC2012PE5200.0023JUL2012&symbol=NIFTY&flag=1\

That's the link for market watch on the product you specified. Seems there was some trading activity on it today.

 

[megapixel]

Re: RKSV - Unlimited Online Trading @ 1947/-

<scrap...slow connection >

 

[megapixel]

Re: RKSV - Unlimited Online Trading @ 1947/-

That was extremely helpful. I have one more query ....

Can you please tell the relative price fluctuations of NIFTY CALL option price vs NIFTY price.

If NIFTY goes up.....does NIFTY CALL option price goes up ?

If NIFTY goes low ..does NIFTY CALL option price goes low ?

 

[soft_trader]

Re: RKSV - Unlimited Online Trading @ 1947/-

If NIFTY goes up.....does NIFTY CALL option price goes up ?

If NIFTY goes low ..does NIFTY CALL option price goes low ?

Obviously....Any doubt ???

 

[megapixel]

Re: RKSV - Unlimited Online Trading @ 1947/-

Obviously....Any doubt ???

I was going through websites ...and I found that option prices depend upon 6 parameters ...not only just underlying index....like volatility ...time decay ...etc.

So I was worried whether they can have high weightage to determine option price than underlying NIFTY price ....

in fact ...it will be scary if NIFTY going up but option price going down because of other parameters used in BLACK-SCHOLE formula....I dont know ...just a thought....


I also looked up historical data on option prices ....its horrible ....just after 2 days ...the premium price drops highly ....and never goes up....that means once you miss the train ...there is no second chance to board it again

 

[DataRam]

Re: RKSV - Unlimited Online Trading @ 1947/-

I was going through websites ...and I found that option prices depend upon 6 parameters ...not only just underlying index....like volatility ...time decay ...etc.

So I was worried whether they can have high weightage to determine option price than underlying NIFTY price ....

in fact ...it will be scary if NIFTY going up but option price going down because of other parameters used in BLACK-SCHOLE formula....I dont know ...just a thought....


I also looked up historical data on option prices ....its horrible ....just after 2 days ...the premium price drops highly ....and never goes up....that means once you miss the train ...there is no second chance to board it again

Well you have read it right about the different parameters influencing the pricing of the options.

If you plan to trade Options on an Intraday basis then you will be in a better position to take advantage of the price changes in the Premium values depending upon the Intraday movement of the underlying.

If you have to take a positional call on Options then certainly you will have to be very careful in studying the various parameters involved in determining the fair price of the options. Timing matters a lot .

Volatility plays a major role in the pricing of the premiums . Time decay will be prominently visible during the expiry week.

 

[megapixel]

Re: RKSV - Unlimited Online Trading @ 1947/-

If you plan to trade Options on an Intraday basis then you will be in a better position to take advantage of the price changes in the Premium values depending upon the Intraday movement of the underlying.

noted....good idea ....Thanks

 

[bestnifty]

Re: RKSV - Unlimited Online Trading @ 1947/-

That was extremely helpful. I have one more query ....

Can you please tell the relative price fluctuations of NIFTY CALL option price vs NIFTY price.

If NIFTY goes up.....does NIFTY CALL option price goes up ?

If NIFTY goes low ..does NIFTY CALL option price goes low ?

ONE more thing . If Nifty goes down NiftyPUT Option goes Up
and If Nifty goes Up Nifty PutOption goes down . To purchase a call or put option you just pay the premium
for example If Nifty 5400 call is today Rs.40/ means you pay Rs.40x50=Rs.2000/- (plus taxes and brokerages).and your risk is limited to the premium of rs.2000/ only.
But If you sell call or put option you need Full margin of nifty approximately 28000 / .(It may vary everyday). and the risk is unlimited.
For more study the Options thread / Investopedia etc...

 

[megapixel]

Re: RKSV - Unlimited Online Trading @ 1947/-

But If you sell call or put option you need Full margin of nifty approximately 28000 / .(It may vary everyday). and the risk is unlimited.

This is called short sell ...is not it ? ...you sell option without owning them first .... right ?

 

[RKSV]

Re: RKSV - Unlimited Online Trading @ 1947/-

I send signed kyc application form .my name is varun parkash. but till date my account is not opened.please help me. 8699177601

Sorry for the inconvenience. Will get the account opening team get back to you today during business hours.