Queries Reg Options ....

hi,
i'm new to this trade... i have some of these queries ... assume i'm bullish (buy call option), gonna trade on the options of the derivative "TCS" ..

1) spot price = is this spot price for derivative too... nseindia->under quity) -> TCS->get quote ????
(user cannot modify)

2)Date = it shows three, how to choose among these. wch one ll be beneficial.

3) strike price= can i choose below spot price ?? y it shows all lower prices too ? (To get profit, once strike price )

All these will impact on premium amount.

3) (i) after choosing all the above n thereby pressing "go" it ll show one price... is this premium price????
3) (ii) it shows "underlying value" wat is this??

4) ok now if i bought call option with 45rs as premium.. now if the premium increases to 46rs ... ll i get profit of 1rs...
(OR)
as per the def
profit=spotprice-strikeprice-premium

wch one is correct...???
In the first one itself it shows MTM value as blue colour and BEP is same as the premium amount at the tym of buying...

5) can i squareoff if the premium amount goes up thereby MTM value shows blue colour???

can we squareoff before expiry (i think yes)??? amount ll be credited on the same day or after expiry date?

6) what is % interest?
what is volatility??? it should be high or low???

7) premium amount is okey... wat is this bid value.. bid qty=lotsize...ask price=premium... ask qty...OI .. IV...???

8) does paatsaala includes brokerage while buying and selling??

9) ll it be any circumstance in wch opposite party are not present...
eg.., if the price go up i need to squareoff, at tat tym any circumstance wch says " i have to wait for opposite party"... then i ll loose my time ...

10) yesterday i started paatsaala, i bought 2 options 500 500 each lot ... the stock was visible in "carry forward" and "intraday"...
today i hav seen the stocks only in "carry forward"..... the price goes up so i was selling those 500 lot ... after tat the quantity becomes 0. But it comes now in "intraday" as -500 stocks ...
what s this....!!!! :'(

1) spot price = is this spot price for derivative too... nseindia->under quity) -> TCS->get quote ????
(user cannot modify)

Spot price means actual traded value of the equity ...

2)Date = it shows three, how to choose among these. wch one ll be beneficial.

These are expiry dates. When it comes to options, volumes will be good only in nearest expiry ... In Futures, you choose a date based on your holding period. If you want to hold for 3 months, choose the last date

3) strike price= can i choose below spot price ?? y it shows all lower prices too ? (To get profit, once strike price )

All these will impact on premium amount.

Strike price is the price that you bet that TCS will move above or below, by end of expiry. Premium is the value, that traders bet or expect to go above the strike price

3) (i) after choosing all the above n thereby pressing "go" it ll show one price... is this premium price????

No. Select the Option Chain link to check options premium price for various strike price

3) (ii) it shows "underlying value" wat is this??

i believe underlying value is the spot value

4) ok now if i bought call option with 45rs as premium.. now if the premium increases to 46rs ... ll i get profit of 1rs...
(OR)
as per the def
profit=spotprice-strikeprice-premium

which one is correct...???
In the first one itself it shows MTM value as blue colour and BEP is same as the premium amount at the tym of buying...

Profit is 1 Rs ... Premium is what you buy and sell and decides whether you make profits or losses

5) can i squareoff if the premium amount goes up thereby MTM value shows blue colour???

can we squareoff before expiry (i think yes)??? amount ll be credited on the same day or after expiry date?

Yes. You can sell whenever you want. When in profits, keep stop loss which will ensure you stay in profits. Amount will be credited for withdrawal in one or 2 days. Meanwhile, the limit for trading will be increased, so that traders can buy new positions if needed

6) what is % interest?
what is volatility??? it should be high or low???

Open Interest is no of contracts which are in the system currently. % change in Open interest, indicates rise or fall in this number. Volatility is a mathematical number. Check wikipedia for the formula.

7) premium amount is okey... wat is this bid value.. bid qty=lotsize...ask price=premium... ask qty...OI .. IV...???

bid value, is the price an existing highest buyer is ready to buy at. Bid quantity is the amount he is willing to purchase. This will change literally every minute. OI is open Interest. need not worry about IV

8) does paatsaala includes brokerage while buying and selling??

No. They do not include brokerage calculations

9) ll it be any circumstance in wch opposite party are not present...
eg.., if the price go up i need to squareoff, at tat tym any circumstance wch says " i have to wait for opposite party"... then i ll loose my time ...

Make sure volumes and Open Interest on options contract is high. That way, there will always be buyers and sellers. Avoid low volume contracts in options. Only do Futures in Stocks. For options, stick to Nifty and Bank Nifty

10) yesterday i started paatsaala, i bought 2 options 500 500 each lot ... the stock was visible in "carry forward" and "intraday"...
today i hav seen the stocks only in "carry forward"..... the price goes up so i was selling those 500 lot ... after tat the quantity becomes 0. But it comes now in "intraday" as -500 stocks ...
what s this....!!!! :'(

Intra-day will only show positions, orders or trades you do during that particular day ... "Carry Forward" will show your overall net positions. If its confusing, always look at only "Carry Forward"

currently banknifty is 10334... if my strike is 10400 ... LTP is shown 280 this is premium i guess....
now i ll get profit only if it crosses 10400+280
OR i ll get profit even when LTP increse >280
CALL OPTION

Originally Posted by shankarkool

currently banknifty is 10334... if my strike is 10400 ... LTP is shown 280 this is premium i guess....
now i ll get profit only if it crosses 10400+280
OR i ll get profit even when LTP increse >280
CALL OPTION

You will get profit when Premium LTP > 280 ... Premium depends on many factors (Time left to expiry, Bank Nifty Spot movement, VIX and so on).

sir, as a very small investor/trader with Rs 10000/- what strategy should i follow to make profit in option trading.with moderate approach
what kind of data i should know before taking a trade,that trade will not lead me in loss.

Originally Posted by kanu

sir, as a very small investor/trader with Rs 10000/- what strategy should i follow to make profit in option trading.with moderate approach
what kind of data i should know before taking a trade,that trade will not lead me in loss.

Follow a simple options hedge strategy ... More details as to when to do, when not to do, i share with Zerodha clients of bse2nse.com ... Fill-out the form in below mentioned link if you are interested to join ...

http://bse2nse.com/brokers-trading-p...brokerage.html

I would like to know some techincal indicator used for intraday trading like macd, ema and regarding when to buy which call or put

Originally Posted by shankarkool

hi,
i'm new to this trade... i have some of these queries ... assume i'm bullish (buy call option), gonna trade on the options of the derivative "TCS" ..

1) spot price = is this spot price for derivative too... nseindia->under quity) -> TCS->get quote ????
(user cannot modify)

2)Date = it shows three, how to choose among these. wch one ll be beneficial.

3) strike price= can i choose below spot price ?? y it shows all lower prices too ? (To get profit, once strike price )

All these will impact on premium amount.

3) (i) after choosing all the above n thereby pressing "go" it ll show one price... is this premium price????
3) (ii) it shows "underlying value" wat is this??

4) ok now if i bought call option with 45rs as premium.. now if the premium increases to 46rs ... ll i get profit of 1rs...
(OR)
as per the def
profit=spotprice-strikeprice-premium

wch one is correct...???
In the first one itself it shows MTM value as blue colour and BEP is same as the premium amount at the tym of buying...

5) can i squareoff if the premium amount goes up thereby MTM value shows blue colour???

can we squareoff before expiry (i think yes)??? amount ll be credited on the same day or after expiry date?

6) what is % interest?
what is volatility??? it should be high or low???

7) premium amount is okey... wat is this bid value.. bid qty=lotsize...ask price=premium... ask qty...OI .. IV...???

8) does paatsaala includes brokerage while buying and selling??

9) ll it be any circumstance in wch opposite party are not present...
eg.., if the price go up i need to squareoff, at tat tym any circumstance wch says " i have to wait for opposite party"... then i ll loose my time ...

10) yesterday i started paatsaala, i bought 2 options 500 500 each lot ... the stock was visible in "carry forward" and "intraday"...
today i hav seen the stocks only in "carry forward"..... the price goes up so i was selling those 500 lot ... after tat the quantity becomes 0. But it comes now in "intraday" as -500 stocks ...
what s this....!!!! :'(

Originally Posted by tigerking77

I would like to know some technical indicator used for intraday trading like macd, ema and regarding when to buy which call or put

I have made a bunch of videos for Traders ... Watch my playlist of videos at Bollinger Bands Trading Strategy - Indian Stock Market Basics - bse2nse.com - YouTube

Should a novice trader indulge in selling options?