somebody please teach options...!

[niftytaurus]

Thanks , atleast some one turned up..

I didnot understand strike price, plz elaborate in common language that what is it do we need to know it for trading options..

And what is this put ?(is it a sell)...>!!!!

Hi
If you are bullish, buy call & sell put ..if ur bearish, u can buy put & sell call...
there are so many strike price available...ex nifty 5800,5850,5900,5950,6000 etc etc...if market is at 6000...all call & puts strike rate 6000 is at the money...all put under 6000 are in the money ....& all calls under 6000 are out of money...

option is a complicated instrument...it doesnt depend only on underlying but also time & volatility also...
Please read basic on www optionpedia ...please learn some basic ....& then u have some query ,then ask....
thanks

 

[TraderRavi]

Dearr ravi ,

can yu just answer my these questns ?
__________________

I just need a simple decription that if i buy a call should the trend need to go up to be in profit or vice versa.

Is there anything else need to know in options like in futures there is a expiry date?

What about the strike price what is it???

yes sure later LOL :lol: , ur this id LOL :lol:

 

[lol]

Hi
If you are bullish, buy call & sell put ..if ur bearish, u can buy put & sell call...
there are so many strike price available...ex nifty 5800,5850,5900,5950,6000 etc etc...if market is at 6000...all call & puts strike rate 6000 is at the money...all put under 6000 are in the money ....& all calls under 6000 are out of money...

option is a complicated instrument...it doesnt depend only on underlying but also time & volatility also...
Please read basic on www optionpedia ...please learn some basic ....& then u have some query ,then ask....
thanks

Yu described very nicely i understood many thing but i didnt gt this part


"all put under 6000 are in the money ....& all calls under 6000 are out of money...""

 

[niftytaurus]

Yu described very nicely i understood many thing but i didnt gt this part


"all put under 6000 are in the money ....& all calls under 6000 are out of money...""

every option does have expiry dates....as for november option ..on expiry date , if U have 6ooo call ....if market closes below 6000 ..ur option will expire worthless ....but if u have 5900 put...u will get profit..

 

[stock72]

every option does have expiry dates....as for november option ..on expiry date , if U have 6ooo call ....if market closes below 6000 ..ur option will expire worthless ....but if u have 5900 put...u will get profit..

and let say market closes exactly at 6000 then the 5900 put value is 6000-5900= 100 rupees ( brokerage ,STT excluding )
further both 6000 Call and 6000 put have no value ...

 

[niftytaurus]

Yu described very nicely i understood many thing but i didnt gt this part


"all put under 6000 are in the money ....& all calls under 6000 are out of money...""

Hi
on expiry date, if underlying price is under 6000...so all put which strike price is under 6000...will be in profit ....
after that its typing mstake...al l calls above 6000 ,will be out of money

 

[lol]

every option does have expiry dates....as for november option ..on expiry date , if U have 6ooo call ....if market closes below 6000 ..ur option will expire worthless ....but if u have 5900 put...u will get profit..

worthles means loss or no loss no profit??
and what about the profit is it percentage or margin value or simply the entry rate and closing difference

 

[anup]

worthles means loss or no loss no profit??
and what about the profit is it percentage or margin value or simply the entry rate and closing difference

Lol Bhai, Worthless means it will become zero or hardly 20 or 50 paise..Options are hard to trade because we need to know direction,IV(implied volatility) and option greeks...

 

[lol]

Lol Bhai, Worthless means it will become zero or hardly 20 or 50 paise..Options are hard to trade because we need to know direction,IV(implied volatility) and option greeks...

IV(implied volatility) and option greeks..??????

 

[lol]

Sorry for troubling , i just dont want to be in loss to know these simple things......as what will be what