For trading/investing purpose you do not need knowledge of scientific formulas. Simple strategies like buying options are similar to buying stocks to large extent. You need to pick a good strategy according to perceived market trend and understand the risk.
What is a premium? The amount payable by the option buyer to the option writer (seller) for owning the option. The value of premium is determined by the market by demand and supply.
Number of lots should be in whole numbers like 2, 3 4 and so on but not fractions. So if you have traded 3 lots of NIFTY you actually hold 3 50 (No of lots Nifty lot size) 150 contracts.
Also, there are some tools and data services available that can be used to study historic prices. Do I need knowledge of advanced mathematics to understand options? This is a very common myth.
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Contract defines a fixed price at which stocks could be traded. This is called strike price. Contract has a maturity date which is the date till the contract is valid. The seller (called option writer) sells the contract to Buyer.
Strategies from the search results can be picked and viewed. Users can also update selected strategies. StrategyBuilder Users can build their own strategies by searching options and then combining selected options.
This list is maintained by exchanges and updated from time to time. In NSE website m you can get the list under FnO section. Is it possible to trade option contract in any quantity I want?
These options strategies are created by combining various Stock or Index options available for trading in stock exchanges. Users can also search for individual stock or index options. Three main tools available are: StrategyFinder Users can search options strategy based.
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Lets understand it using an example. Suppose you want t.
Where can I get the lot size information? Refer exchange web-site for details. In NSE you can find the details under FnO section. Where can I see the list of tradable options and their strike prices?
Buyer pays the price of the contract called premium to seller. Buyer has the right, but not the obligation to buy/sell the stock(underlyer) at a fixed price (strike price). The contract also obligates the seller or writer to meet the.
Case I : Reliance stock price is less than the strike price. Reliance stock trading at 2400 on expiry day cut-off time Net Profit (Strike Price Current Price) premium Case II : Reliance stock price strike price (2500) on expiry.
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What is a strike price? It is the fixed price at which owner (buyer) of the CALL option can buy the underlying asset from option seller, no matter whatever is the current price of the underlying asset.
It is also influenced by the price movement of the underlyer (stock, index etc). What is a lot size? Options are traded in pre-defined lots. For example if you want to buy NIFTY options you have to buy in lots.
If you have not fully understood the concept of Options please dont give up. Continue to read the FAQ section; many of your doubles will get cleared after reading subsequent sections.
For more information refer tools sections or get yourself registered with us. What all exchanges are covered in the website? Currently we are covering only National Stock Exchange of India (NSE) Are the strategies and prices displayed on the web-site.
Every contract has an expiration date. What is a call options? A call is an option contract that gives the owner the right to buy the underlying stock at a specified price (strike price) for a certain, fixed period of.
If you want to further study the pricing models and volatility related topics you may require good background in mathematics. Options Basics What is an Option? An option is a contract to buy/sell a stock (underlyer).
How can I benefit from selling a call option? This is a bearish strategy. It has unlimited loss and limited profit potential. Selling options is not recommended for beginner level traders.
To know subscription details please refer subscription section. What are the payment options available? We have integrated payment gateway in our website. You can pay via credit cards, debit cards and Net banking.
For Intraday system package prices are near real-time. For options strategies package prices are updated and options strategies are generated every fifteen minute during market hours. At what time of the day options strategies database gets updates?
Can I execute trades from this website? No, at this point time you cannot execute your trades from this web-site. I have forgot my password what should I do? From home page click on Login button.
Every fifteen minutes options prices are downloaded and options strategies are generated during market hours. Is it a paid or free site? You can register free. Free subscribers get limited access to the website.
50 per contract Case II : Reliance stock price less than strike price (2500) on expiry day cut-off time Net loss Premium paid Rs. 50 per contract So when you buy a CALL option you have unlimited profit potential but.
People buy CALL option when they are bullish i.e. they anticipate that price of the underlying stock will move up. Lets understand using an example. Suppose, todays date is 1-MAY-2008 and you buy a RELIANCE CALL option (strike2500, maturity June.