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.
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.
In case of NIFTY, 1 lot 50 contracts. You can trade only whole number contracts like 1, 2, 3 and so on but not in fractions. What is options expiry? Options expiry is a date after which the contract is.
M What m is about? m provides suite of tools trading tips related to options strategies, NIFTY Intraday Trading. Users registered to the website can search and build tradable options strategies.
Example, if strike price of Reliance PUT option is 1300 that means buyer of this option can sell Reliance stock at 1300 even if the current market price of the stock is lower (say 1100).
Suppose, todays date is 1-MAY-2008 and you buy a Reliance PUT option (strike2500, maturity June 2008) @ Rs. 50 per contract when RELIANCE stock was TRADING at 2600. Lets see what happens after options expiration.
What is a put option? A call is an option contract that gives the owner the right to sell the underlying stock at a specified price (strike price) for a certain, fixed period of time (until its expiration).
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.
How can I benefit from buying Put option? People buy PUT option when they are bearish i.e they anticipate that price of the underlying stock will go down. Lets understand using an example.
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).
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Lets understand it using an example. Suppose you want t.
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.
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.
Refer exchange web-site for details. In NSE you can find the details under FnO section. Where can I find the historical options prices? Refer exchange web-site for details. In NSE you can find the details under FnO section.
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.
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.
Can be used by traders interested in NIFTY Options, Futures or Options Strategies. Options Tutorial This package can be used by traders who want to learn options trading. Content includes lots of examples from Indian market context and includes concepts.
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.
Example, If strike price of Reliance CALL option is 1300 that means buyer of this option can buy Reliance stock at 1300 even if the current market price of the stock is higher (say 1500).
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.
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.
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.
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.
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?
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?
50 per contract when RELIANCE stock was getting traded at 2400. Lets see what happens after options expiration. Case I : Reliance stock price greater than the strike price. Reliance stock trading at 2600 on expiry day cut-off time Net.
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?