Hi Pros!
I have been trading stocks for past 5 yrs. Recently Options caught my eye. I have read the theory but confused about how it really works in the indian stock market scenario.
1. Lets say Nifty 5800 Call is showing as 41.00. How much cash do I need in my account to buy it? Is it Rs 4100 for 1 lot?
2. Lets say Nifty 5800 Call price increased to 45.00 1 day later. Can I sell my call option and make profit of Rs 400 or am I bound to wait till expiry?
3. Does this work differently for individual stock options (I mean non-index based options)?
4. Can I use standard stock charts to make decisions for options? Is there any downfall of doing so?
I am sorry if my questions sound very basic but I need the answers to break the barrier.
Thanks
Prodigi
I have been trading stocks for past 5 yrs. Recently Options caught my eye. I have read the theory but confused about how it really works in the indian stock market scenario.
1. Lets say Nifty 5800 Call is showing as 41.00. How much cash do I need in my account to buy it? Is it Rs 4100 for 1 lot?
2. Lets say Nifty 5800 Call price increased to 45.00 1 day later. Can I sell my call option and make profit of Rs 400 or am I bound to wait till expiry?
3. Does this work differently for individual stock options (I mean non-index based options)?
4. Can I use standard stock charts to make decisions for options? Is there any downfall of doing so?
I am sorry if my questions sound very basic but I need the answers to break the barrier.
Thanks
Prodigi