How to trade call and put options in zerodha
July 9, at 8: Trading Systems 10 chapters. You will not make money doing so, or in other words you will certainly lose money in such circumstances. Devrat, as a seller of the option, you should look for situations where the option will turn worthless.
May 26, at 4: The mirror image of the payoff emphasis the fact that the risk-reward characteristics of an option buyer and seller are opposite. November 10, at 5: February 1, at May 25, at 1:
When does the build up condition meet? Yes, its all a play on premiums, while some prefer to close it before expiry others prefer to hold to expiry. Likewise, if you are short, sq off means you are closing by means of buying back. In that case am I writing an Call option?
Sorry karthikthat was a wrong doubt i posted above. Do remember the premium paid for this option is Rs 6. Now if the price moves to and premium is now at 3 so would be my profit?? May 30, at
I have a situation here. My one friend explained one strategy in which one can earn money surely if nifty aggressively move upward or downward. In the event of writing should I have the required margin in my trading account?
September 8, at 1: So having said that the traders prefer to trade just the premiums, you may have a few fundamental questions cropping up in your mind. January 8, at I know the point of unlimited profit and limited profit, but why would anybody want to sell a put option as it has limited reward i.
Who decides what should be the premium price of a particular option? Hi Karthik How come large OI in a call at a particular strike price indicates resistance while it should mean that traders are expecting that price to cross thats why they are buying that call strike….? Firstly, I convey my heartily thank for this type of wonderful effort.
Expiry has nothing to do with this. Even if we r there we may miss the trade id doing some thing else at the time we are suppose to trade or squareoff the tyrade. April 15, at July 16, at 6:
January 1, at 7: December 8, at There is no mark to market like in Futures in options. This means to say that the option writers earn small and steady returns by selling options, but when a disaster happens, they tend to lose a fortune.