Option and future option trading in india tutorial
So, please tell me whether i was doing any wrong process or there is something about call square off before expiry which i dont know. Increase in volatility increases option premiums and vice versa. Just finished reading the Futures module. You are doing extremely good job. If the premiums are too high then probably selling a Put maybe more profitable than buying a call.
If the highway indeed comes up, the valuation of the land is bound to increase and therefore Ajay would benefit from the investment he would make today. Options Theory for Professional Trading 23 chapters 6. March 5, at 8: August 5, at 3: Is the current price shown for the options for a single contract or for a single LOT 75 contracts?
October 16, at 7: But the answer to your query is because of Volatility. May 18, at 6: So when the price drops to 65 — you still need to honor the agreement and buy it at Also, whenever an order is rejected, there will be a rejection reason which is displayed.
Option shorting margins is similar to futures margin. My question is …… can we sell the option call any time before the expiry date or only on the date is fixed??????? Consider this as a non refundable agreement fees that Ajay pays Against this fees, Venu agrees to sell the land after 6 months to Ajay The price of the sale which is expected 6 months later is fixed today at Rs. What happened to the remaining? Really thanks for your valuable guidance.
Agreed Ajay would lose 1 lakh, but the best part is that Ajay knows his maximum loss which is 1 lakh before hand. So yes, you can pocket the profit of Rs. September 27, at What type of account data i need to hold for incometax purposes.