Options Trading Strategies

[SriVijay]

Hi Sunil,

Thanks for very useful post.

I have a basic question on equity options.

suppose if i bought relcapital 300 CA @12 and now relcapital is trading at 310 and the value of 300 CA is 21.50. I placed a squaroff postion at 22 and no one is buying the 300 CA at this moment. What I can do on this and what if this continue on the expiry day also.

Thanks,
dee

Stock options can be exercised any day before expiry....so you simply excercise it ....you will recieve the closing rate premium .....

regards
Vijayakumar

 

[nareshch]

Hi Sunil,

Thanks for very useful post.

I have a basic question on equity options.

suppose if i bought relcapital 300 CA @12 and now relcapital is trading at 310 and the value of 300 CA is 21.50. I placed a squaroff postion at 22 and no one is buying the 300 CA at this moment. What I can do on this and what if this continue on the expiry day also.

Thanks,
dee

You can excercise your option on any da. BUT , as Relcapital is trading at 310 , you will get only Rs10 for 300 CA which results in Loss of Rs2.

On expiry day , options will be excercised by exchange and resulting profit/loss will be credited to your account .
For example , Relcapital trades @ 320 on expiry , you will get the amount credited to your account ( 320-300 = Rs20) .
My sincerre advice is not to trade in illiquid stock options .

Naresh

 

[jcb840]

But can u tell that how to excercise option practically
is there any option in sell window for excercising
or i need to call broker after mkt hrs or somthing like that

 

[nareshch]

But can u tell that how to excercise option practically
is there any option in sell window for excercising
or i need to call broker after mkt hrs or somthing like that

Check for excercise option in our F&O tarding terminal . It depends on your terminal and i dont think it will be in your sell window.

Naresh

 

[jcb840]

I m using odin ver 9.1.0.5

 

[deekonda]

You can excercise your option on any da. BUT , as Relcapital is trading at 310 , you will get only Rs10 for 300 CA which results in Loss of Rs2.

On expiry day , options will be excercised by exchange and resulting profit/loss will be credited to your account .
For example , Relcapital trades @ 320 on expiry , you will get the amount credited to your account ( 320-300 = Rs20) .
My sincerre advice is not to trade in illiquid stock options .

Naresh

Thank you very much Naresh... Nice one

 

[AW10]

To excercise option, check with your borker about the process that you will have to use with them.. This can differ from borker to broker. With sharekhan, you will have to call them around 3.45 pm and place the excercise option.. (NSE opens open excercise window for brokers around that time).
On ICICIDirect, u have option to place execercise request online without any call to helpdesk etc.

Happy Trading

 

[sandeep.kala]

In Option Trading, How select the stirke price ?

 

[praveen taneja]

In Option Trading, How select the stirke price ?

:clapping::clapping::clapping::clapping: nice question

 

[sandeep.kala]

:clapping::clapping::clapping::clapping: nice question

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