hi Masters & Seniors,
I m Prakkash, I m completely new to this hope i will learn a lot here and start my journey in the world of stocks and options.
My main interest is in options.
I have some doubts in Options.Could u guys plz take some time to clarify them.
Q1. can i buy and sell a call option(Call America)contract on the same day ?
(ex: If i a buy a call CA of xyz company with a strike price of 120 at 10 am on monday morning with a premium of Rs2.20 say lot of 4124.The premium rised to Rs3.20 same day can i squeare off on the same day and make my profit of rs 1 on each share i.e Rs4124*3.20-2.20=Rs4124 or should i wait for some period)
Q2. If i sell the call Option (square off ) only to make the money in price rise of premium,will i be obliged to deliver the shares to the buyer of my Call option?
Q3. why some contracts BSP and BBP will have wide gaps ? ex BBP=6 BSP+12.30. Should we avoid such socks ?
Q4.how doe we intreprete Open Interest shouldit be high or low ?
Please clarify my above doubts.
Thanx in advance
Prakkash
I m Prakkash, I m completely new to this hope i will learn a lot here and start my journey in the world of stocks and options.
My main interest is in options.
I have some doubts in Options.Could u guys plz take some time to clarify them.
Q1. can i buy and sell a call option(Call America)contract on the same day ?
(ex: If i a buy a call CA of xyz company with a strike price of 120 at 10 am on monday morning with a premium of Rs2.20 say lot of 4124.The premium rised to Rs3.20 same day can i squeare off on the same day and make my profit of rs 1 on each share i.e Rs4124*3.20-2.20=Rs4124 or should i wait for some period)
Q2. If i sell the call Option (square off ) only to make the money in price rise of premium,will i be obliged to deliver the shares to the buyer of my Call option?
Q3. why some contracts BSP and BBP will have wide gaps ? ex BBP=6 BSP+12.30. Should we avoid such socks ?
Q4.how doe we intreprete Open Interest shouldit be high or low ?
Please clarify my above doubts.
Thanx in advance
Prakkash