Hello,
I am planning to use ICICIDIRECT for options. Have a couple of questions.
1. Naked Puts:
Lets say a stock is trading Rs.100. I want to buy the stock if it goes to Rs.80.
So I sell a naked put option of that stock of strike price Rs.80.
My question is if the stock goes below Rs.80 below before expiration and someone exercises the Put option which I sold then would ICICI automatically buy the stock using the cash in my account for Rs.80? Or would they square off my position before the expiration and assign me a loss for the trade?
2. Covered Call:
Lets say I have shares of company ABC which is trading at Rs.100. I want to sell a covered call of the ABC stock (strike price Rs.120). If the stock goes up above Rs.120 before expiration, would ICICI sell the shares in my demat for Rs.120 and credit me the amount for the shares sold?
Basically the question is...in ICICI or any other Option Broker, is there a link between the share in demat account and the covered call sold....OR do they treat them independently?
3.Who are bestbrokers for Options Trading other than ICICIDIRECT.
Thanks.
I am planning to use ICICIDIRECT for options. Have a couple of questions.
1. Naked Puts:
Lets say a stock is trading Rs.100. I want to buy the stock if it goes to Rs.80.
So I sell a naked put option of that stock of strike price Rs.80.
My question is if the stock goes below Rs.80 below before expiration and someone exercises the Put option which I sold then would ICICI automatically buy the stock using the cash in my account for Rs.80? Or would they square off my position before the expiration and assign me a loss for the trade?
2. Covered Call:
Lets say I have shares of company ABC which is trading at Rs.100. I want to sell a covered call of the ABC stock (strike price Rs.120). If the stock goes up above Rs.120 before expiration, would ICICI sell the shares in my demat for Rs.120 and credit me the amount for the shares sold?
Basically the question is...in ICICI or any other Option Broker, is there a link between the share in demat account and the covered call sold....OR do they treat them independently?
3.Who are bestbrokers for Options Trading other than ICICIDIRECT.
Thanks.