How to square-off options trading

Hi Mani,

Am happy to join zerodha through bse2nse.

Am new to trading, kindly clarify the options trading basics.

1. Is it must to square-off the trade or we can either buy or sell in the options?

2. How to square off the Nifty options index trade ?
(In NSE paathshaala, trying options but don't know how to square-off)

Ex:
Nifty price(Spot Price) : Rs.7747

I have choosen the strike price 7750 call option NIFTY14OCT7750CE, by clicking Buy in this contract (Bought for the premium Rs.118)

Observed LTP increases to Rs.120(profit am right ?). After making profit want to sell, here raises many questions for me.

Need to click Sell in which contract NIFTY14OCT7750CE or NIFTY14OCT7750PE ?

And to what premium ? NIFTY14OCT7750CE LTP price or NIFTY14OCT7750PE LTP price ?

Kindly clarify.

Thanks,
Ramesh.

1. Is it must to square-off the trade or we can either buy or sell in the options?

You can square off whenever you want to before expiry ... Or it gets squared off automatically by broker on close of expiry ...

2. How to square off the Nifty options index trade ?
(In NSE paathshaala, trying options but don't know how to square-off)

If you have a buy position, use sell order for same quantity to square off ... Vice versa if you have a sell or short position

I have choosen the strike price 7750 call option NIFTY14OCT7750CE, by clicking Buy in this contract (Bought for the premium Rs.118)

Observed LTP increases to Rs.120(profit am right ?). After making profit want to sell, here raises many questions for me.

Need to click Sell in which contract NIFTY14OCT7750CE or NIFTY14OCT7750PE ?

And to what premium ? NIFTY14OCT7750CE LTP price or NIFTY14OCT7750PE LTP price ?

you need to sell NIFTY14OCT7750CE (same contract you bought) ... You can place a limit order or market order to square off ...

To understand various types of orders (Limit, Market, Stop loss), watch the below video of ours ...