how to write options?

R

renditioner189

New Member
#1
#1
Hi guys,

I am a newbie to options trading. I would like to know the steps involved in writing an option (call or put)? can i just simply sell an option and will that be considered writing an option?

thank you
 
R

ram2010

Well-Known Member
#2
#2
renditioner189 said:
Hi guys,

I am a newbie to options trading. I would like to know the steps involved in writing an option (call or put)? can i just simply sell an option and will that be considered writing an option?

thank you
Click to expand...
Technical term for selling a option is called as writing a option.

no difference.

Selling an option is not your cup of tea. Be careful.
 
L

lemondew

Well-Known Member
#5
#5
Covered call is nothing but selling OTM call. Selling ATM put. buying atm call
Eg nifty at 8000.
Sell 8000 put. buy 8000 call Sell 8300 call.

if it goes down you can ve unlimited loss. if it goes up you ll keep 300 max. This is same covered call writing.
 
test123

test123

Banned
#10
#10
don;t need to square off ... u get 100% premium if it expires worthless

else u can just buy it by placing buy option order that will settle it

it's dangerouse game .. to become writer...
what happens if say call u wrte at R.s 10 becomes R.s 60
you loose hence it;s dangerous to write ..

lets say it:--
call put writer =
limited profit unlimited risk :)
 
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