Day Trading Futures

[starscream]

Return on Investment - more than 2.5 times net.......... :thumb:

Isn't it good enough.......... ?

More than good enuf

 

[pratapvb]

BNF

drifting down along -2SD2day (lower pane)

 

[timepass]

? +ve divergence in BNF 5 min ??

 

[manishchan]

Basic question in Options :

While I trade only Futures, I'm trying to pick up Options by the side with very tiny investment. Question is :

1. Let's say I buy a PUT of a certain script (Jan expiry) today and let it expire (without selling it). What happens if it expires in profit and what happens if expires in loss ?

2. Is there any penalty charged for not closing the trade by expiry date ?

3. Can I roll over the PUT to the next expiry (Feb) if I want to ?

Thanks in advance

 

[_Rajesh_]

Basic question in Options :

While I trade only Futures, I'm trying to pick up Options by the side with very tiny investment. Question is :

1. Let's say I buy a PUT of a certain script (Jan expiry) today and let it expire (without selling it). What happens if it expires in profit and what happens if expires in loss ?

2. Is there any penalty charged for not closing the trade by expiry date ?

3. Can I roll over the PUT to the next expiry (Feb) if I want to ?

Thanks in advance

This should answer the first 2 questions.

http://zerodha.com/z-connect/queries/stock-and-fo-queries/stt-options-nse-bse-mcx-sx

 

[pratapvb]

Basic question in Options :

While I trade only Futures, I'm trying to pick up Options by the side with very tiny investment. Question is :

1. Let's say I buy a PUT of a certain script (Jan expiry) today and let it expire (without selling it). What happens if it expires in profit and what happens if expires in loss ?

2. Is there any penalty charged for not closing the trade by expiry date ?

3. Can I roll over the PUT to the next expiry (Feb) if I want to ?

Thanks in advance

1. Bought ITM puts that expiry are subject to heavy taxes = to that of equity.....the reason....it is deamed as taking delivery but just settled in cash....so NF options ITM expiry just cost of letting it expiry is about 7pts I think...brokerage to close it maybe less than 1pt

2. only taxes as mentioned above

3. you can close Jan leg anytime and buy Feb leg....I am assuming you are trading very liguid options like NF

 

[Nettwork]

Any chances BNF reaching its 50% retracement around 10300 this series (for low/high 8366 - 12226)

 

[manishchan]

Thank you Rajesh and Pratap ! Yes, I'm looking at liquid stocks only

If it is OTM, does it still attract taxes ?

1. Bought ITM puts that expiry are subject to heavy taxes = to that of equity.....the reason....it is deamed as taking delivery but just settled in cash....so NF options ITM expiry just cost of letting it expiry is about 7pts I think...brokerage to close it maybe less than 1pt

2. only taxes as mentioned above

3. you can close Jan leg anytime and buy Feb leg....I am assuming you are trading very liguid options like NF

This should answer the first 2 questions.

http://zerodha.com/z-connect/queries/stock-and-fo-queries/stt-options-nse-bse-mcx-sx

 

[Gaur_Krishna]

Are you following any perticular OPTION STRATEGY ST da?

Regards,
Gaur_Krishna

llowing options position in Nifty Jan .

1) Short 6300 call and put both with combined premium of Rs 90

2) Long 6200 put and 6400 call with combined premium of Rs 35

I was expecting the expiry around 6300 +/- 50 points. But now as the market has cracked, will be taking profits from 6300 calls sold and selling 50 % qty in 6100 calls to repair this position which is likely to make a loss of 35 points if kept till expiry.

Also short in Nifty Fut from over 6355 and here will sell 6200 puts to lock in the profits.Will book the profits if the market opens with a large gap down on Monday.

Smart_trade[/QUOTE]

 

[pratapvb]

Thank you Rajesh and Pratap ! Yes, I'm looking at liquid stocks only

If it is OTM, does it still attract taxes ?

no ...then you have not taken delivery right...so no taxes

and taxes only for bought options that are ITM as it is deemed delivery

not for short options

if OTM and you let it expiry then u save brokerage also.....

but note that final settlement is not close at 3.30pm...but some avg of last 15mins......

so if you have bought 6300PE say and final expiry price is 6299....then you will get Rs 1 and pay tax Rs 7