Sensex option trading
Which are the stocks on which options are available? Only ITM Options have intrinsic value. This is the day on which a derivative contract ceases to exist. These Options have individual stocks as the underlying asset.
Stock Option These Options have individual stocks as the underlying asset. What are the risks for an Options writer? What are Options on individual stocks?
Closing sale — This is done with the selling intention of reducing or eliminating a long position in a given series of Options. These Options have Index as the underlying asset. Short Call Condor Strategy.
Back to Chapter List Previous Chapter. Sensex option trading should I invest in options? Strike price is the price per share for which the underlying security may be purchased or sold by the Option holder. Assume that you buy a Call Option with strike price of at sensex option trading premium of Rs. Rho measures the change in Option price per unit change in interest rate.
Assume that you buy a Put Option with strike price of at a premium of Sensex option trading. With respect to an Option transaction:. So if my delta is 0. You, as an Option buyer, pay a relatively small premium for market exposure in relation to the contract value.
The RBI's decision to allow banks to invest upto five per cent of total outstanding credit in equities would sensex option trading trade volumes in the cash segment and sensex option trading derivatives would prove to be good investments for banks for their short term asset liability and cash management. Index based futures Index-based options Individual stock options Individual stock futures 1. What will be the new margining system in the case of Options and futures? For example, last traded price of different OTM Calls and Puts, when underlying Nifty is trading atare as follows:.
On Aug 28,Nifty was trading at Who would use Index Options? Has the obligation to buy the underlying asset from the option holder at the sensex option trading price. It entirely depends on particulars being traded, details of quality and quantity of the commodity.
How can an option writer take care of his risk? Alike way BSE offers trading in future for fundamental assets as following sensex option trading Call Option is said to be OTM, when spot price is lower than strike price. It is the last trading date of the contract.
Strike price is the price per share for which the underlying security may be purchased or sold by the Option sensex option trading. Closing purchase — This is done with the purchasing intention of reducing or eliminating sensex option trading short position in a given series of Options. Options — An option provides the right to the buyer but not the obligation to purchase or sell the particular assets on the particular time period and definite cost. Where can I trade in Options and Futures contracts?