What is call option and put option in share market with examples
I know all these tools can be developed by me, but any ready made tool will be helpful. What the put seller must do. Exercise call option if the stock price rises above the strike price.
September 28, at For all practical purposes I would suggest you use the 2nd way of calculating profits…i. If the put seller already has money in his account to buy the stock, the put option is covered. Sorry karthikthat was a wrong doubt i posted above. If I am doing so, should I do that by writing a put option?
February 1, at 6: Could you please share an example? What is meaning of exercise.? Below this we can notice the OHLC data, which quite obviously is very interesting.
Can the option writer square off his position and take the profit of 8 Rs? Of course there is an angle of volatility here which we have not discussed yet; we will discuss the same going forward. If the seller gets called - he must sell the stock. So, which one is better, to square off beforehand or wait till expiry, if there is no risk of incurring loss? August 26, at 2:
So if the put buyer decides to exercise the put contract, the seller of the put has to buy the shares at the strike price no matter the current market value of the stock. I have seen today on 28th Octboth call and put options premiums are going up. You can sell covered calls to generate a stream of income.
If it does, it becomes more costly to close the position repurchase the put, sold earlierresulting in a loss. July 28, at 6: May 25, at 1: 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. 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.
There are no additional charges that you pay if you hold the sold option to expiry. This option gives you a right to buy shares at INR before contract expiry. This page was last edited on 30 Marchat January 1, at 8:
Below this we can notice the OHLC data, which quite obviously is very interesting. December 27, at 7: He had to borrow money from his children. If you're right, you can make quick money. The terms for exercising the option's right to sell it differ depending on option style.
Options Theory for Professional Trading 23 chapters 6. Alternative Actions for the Call Buyer. Any price movement of the spot above would yield us profit.