Comments on: Basic Introduction to Options (derivatives) http://www.jagoinvestor.com/2008/06/what-is-option-option-is-contract-which.html Financial Planning , Insurance , Mutual Funds , Investments Sat, 11 Feb 2012 16:26:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Manish Chauhanhttp://www.jagoinvestor.com/2008/06/what-is-option-option-is-contract-which.html#comment-32995 Manish Chauhan Mon, 09 Jan 2012 05:04:09 +0000 http://www.jagoinvestor.com/?p=30#comment-32995 Indrajit 1. Definately.. you can sell your option at 90 and make a profit of Rs 40 (90-50) 2. If you have sold the call option , then you are out of the option and now whatever happens in expiry has nothing to do anything with you . But suppose you have not sold your option , then at the end of the expiry , whatever is the option value at the end will be your worth - like if its worth 4850 , then its worth is Rs 50 , then you have no profit no loss .. but suppose the nifty was at 5000 , then your option worth is Rs 200 (5000 - 4800) . Manish Indrajit

1. Definately.. you can sell your option at 90 and make a profit of Rs 40 (90-50)
2. If you have sold the call option , then you are out of the option and now whatever happens in expiry has nothing to do anything with you . But suppose you have not sold your option , then at the end of the expiry , whatever is the option value at the end will be your worth – like if its worth 4850 , then its worth is Rs 50 , then you have no profit no loss .. but suppose the nifty was at 5000 , then your option worth is Rs 200 (5000 – 4800) .

Manish

]]> By: Indrajithttp://www.jagoinvestor.com/2008/06/what-is-option-option-is-contract-which.html#comment-32903 Indrajit Sun, 08 Jan 2012 09:30:23 +0000 http://www.jagoinvestor.com/?p=30#comment-32903 hi Manish, suppose today(1st jan) nifty is at 4700 i buy a call 4800 at premium rs.50(50*50=2500rs) now supose on 15th jan nifty is at 4750 and premium is goin on rs 90. let i dnt want to wait upto last thursday, 1)can i sell the lot whch i buyed at 50rs premium?? if yes do i get any profit?? 2) nw let at expiry date nifty is at 4850,i hav already sold my premium what is my loss and profit at the end? hi Manish,
suppose today(1st jan) nifty is at 4700
i buy a call 4800 at premium rs.50(50*50=2500rs)
now supose on 15th jan nifty is at 4750 and premium is goin on rs 90.
let i dnt want to wait upto last thursday,
1)can i sell the lot whch i buyed at 50rs premium?? if yes do i get any profit??
2) nw let at expiry date nifty is at 4850,i hav already sold my premium what is my loss and profit at the end?

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2008/06/what-is-option-option-is-contract-which.html#comment-26012 Manish Chauhan Mon, 15 Aug 2011 04:09:00 +0000 http://www.jagoinvestor.com/?p=30#comment-26012 Jsan I am not that proficient in options . The main thing you have to learn is how to control your emotions , greed and fear . Manish Jsan

I am not that proficient in options . The main thing you have to learn is how to control your emotions , greed and fear .

Manish

]]> By: Jsanhttp://www.jagoinvestor.com/2008/06/what-is-option-option-is-contract-which.html#comment-25979 Jsan Sat, 13 Aug 2011 09:17:04 +0000 http://www.jagoinvestor.com/?p=30#comment-25979 Hi Manish, The article is intro to Options. I have done Options trading and have lost some money in it but I still want to learn it because I know it also has potential to earn a lot of return for you. Can you guide me on how to speculate in a better or a better strategy for Options. Hi Manish,
The article is intro to Options. I have done Options trading and have lost some money in it but I still want to learn it because I know it also has potential to earn a lot of return for you. Can you guide me on how to speculate in a better or a better strategy for Options.

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2008/06/what-is-option-option-is-contract-which.html#comment-22381 Manish Chauhan Wed, 20 Apr 2011 12:54:00 +0000 http://www.jagoinvestor.com/?p=30#comment-22381 No you cant exercise it in parts , its one whole lot Manish No you cant exercise it in parts , its one whole lot

Manish

]]> By: Sanjay Singhaniyahttp://www.jagoinvestor.com/2008/06/what-is-option-option-is-contract-which.html#comment-22251 Sanjay Singhaniya Sun, 17 Apr 2011 10:06:50 +0000 http://www.jagoinvestor.com/?p=30#comment-22251 First comment itself talks about the execution of options (it talks about execution of options which have intrinsic value - in other words in-the-money options). What use an option will have if the last buyer is not able to execute/exercise it? Another question : if I buy a call-option of 50 nifty shares (which is one lot size), can i decide to exercise only 10 of them? I am fine with letting go the premium of other 40 shares. First comment itself talks about the execution of options (it talks about execution of options which have intrinsic value – in other words in-the-money options). What use an option will have if the last buyer is not able to execute/exercise it?

Another question : if I buy a call-option of 50 nifty shares (which is one lot size), can i decide to exercise only 10 of them? I am fine with letting go the premium of other 40 shares.

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2008/06/what-is-option-option-is-contract-which.html#comment-22249 Manish Chauhan Sun, 17 Apr 2011 08:16:32 +0000 http://www.jagoinvestor.com/?p=30#comment-22249 Sanjay At the moment in India , you dont have execution facility in options , you can only buy and sell and settle the money Manish Sanjay

At the moment in India , you dont have execution facility in options , you can only buy and sell and settle the money

Manish

]]> By: Sanjayhttp://www.jagoinvestor.com/2008/06/what-is-option-option-is-contract-which.html#comment-22241 Sanjay Sun, 17 Apr 2011 04:46:42 +0000 http://www.jagoinvestor.com/?p=30#comment-22241 Hi Manish, I am a long term investor. I am not interested in buying or selling options. I am interested in executing them. Is there a way to buy options smaller than lot size? lot size 50 is too big for me to execute the options. What I want to do is this.... I am a long term investor (buy-and-hold kind of investor). Sometimes market falls down a lot but I don't have money to buy. But I can arrange the money in next 2 or 3 months. So I would like buy At-the-money call option when market has fallen. But I would like to execute the option in next 2 or 3 months. Nifty has current value around 5000Rs. With lot size 50, executing the option requires investment of 2.5 lacks. I don't want to invest so much. I am fine with investment of 40000 Rs or so. Is there any way to implement this investment strategy? Hi Manish,
I am a long term investor. I am not interested in buying or selling options. I am interested in executing them. Is there a way to buy options smaller than lot size? lot size 50 is too big for me to execute the options.
What I want to do is this….
I am a long term investor (buy-and-hold kind of investor). Sometimes market falls down a lot but I don’t have money to buy. But I can arrange the money in next 2 or 3 months. So I would like buy At-the-money call option when market has fallen. But I would like to execute the option in next 2 or 3 months. Nifty has current value around 5000Rs. With lot size 50, executing the option requires investment of 2.5 lacks. I don’t want to invest so much. I am fine with investment of 40000 Rs or so.
Is there any way to implement this investment strategy?

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2008/06/what-is-option-option-is-contract-which.html#comment-20833 Manish Chauhan Fri, 04 Mar 2011 10:16:06 +0000 http://www.jagoinvestor.com/?p=30#comment-20833 Sreenivassa I am not sure on that , I suggest you read more on options and get more knowledge by practice :) Manish Sreenivassa

I am not sure on that , I suggest you read more on options and get more knowledge by practice :)

Manish

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