Want to learn Options Trading

U

uasish

Guest
#21
Dear Sir,
I am a new boarder here & never traded in option.Can u tell me where to
get a Option Cal. & how to use it.
Regards
Asish
 
#22
Dear all...
I have bought MTNL 150 dec. option yesterday when spot price was 136, todat mtnl hit 143 but option price just move by 10 paise only. is it the time decay factor? if it is time factor then why price difference is so much.
I actually averaged my price as i have one option at Rs.2.60.
Pls tell me why price is not moving as only 2 days are left.

Vishalm
 

vince

Active Member
#23
vishal2345 said:
Dear all...
I have bought MTNL 150 dec. option yesterday when spot price was 136, todat mtnl hit 143 but option price just move by 10 paise only. is it the time decay factor? if it is time factor then why price difference is so much.
I actually averaged my price as i have one option at Rs.2.60.
Pls tell me why price is not moving as only 2 days are left.

Vishalm
Yes , options decay fastest closer to expiry. Pls read up on the greeks. It should be helpful.
 

sh50

Active Member
#24
Our broker suggested that if you have the delviery of a particular share, then you can sell both put and call options at upper and lower limits and square if off when it goes the other way. The issue is how to do this in a proper, systematic, organized manner.
 

vince

Active Member
#25
uasish said:
Dear Sir,
I am a new boarder here & never traded in option.Can u tell me where to
get a Option Cal. & how to use it.
Regards
Asish
Your broker should be providing an option cal. along with the trading platform. Using it is a no brainer, just fill in the respective details. May be if you could tell us what exactly you want to know, we could give you a more precise reply.
 
#27
Hi all,
Can anybody expain me abt the possible loss situation in covered call option.
For example
1)I buy satyam 740 future one lot(600*740*16/100=71040 + brokerage)
2) i sell satyam 740 call @ 28 rupees
i will only squreoff my position when satyam comes down to 740-28=712.
is there any hiden loss other than brokerage.
pls just explain me abt what are the possible situation for loses.
 

vince

Active Member
#28
sup_ida said:
Hi all,
Can anybody expain me abt the possible loss situation in covered call option.
For example
1)I buy satyam 740 future one lot(600*740*16/100=71040 + brokerage)
2) i sell satyam 740 call @ 28 rupees
i will only squreoff my position when satyam comes down to 740-28=712.
is there any hiden loss other than brokerage.
pls just explain me abt what are the possible situation for loses.
In addition to your brokerage the call option you shorted will be carrying some premium which you will have to pay to buy back for square off.
 

vince

Active Member
#30
sup_ida said:
Hi vince,
Thanks for ur reply.what is assigned position in F&O ?.could u pls explain this.
If the option you have shorted gets in the money, the buyer could choose to exercise (his right to buy/sell the shares). You could be assigned to fulfill this obligation. It is a random process initiated by the exchange. I hope I have been of some help.
 

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