My Daily Options Trading Diary

[Shravan Reddy]

Hi Murtaza Bhai..

I have a question...
I have a lot of 5500PE at 7.75.. nad presently it is at 1.00. What will happen if i do not close this by next thursday. I know it will expire, but what will happen if it expires.. should i pay the excess amount(the brokerages) and other charges from my pocket?
Please let me know.. TIA

 

[MurAtt]

Hi Murtaza Bhai..

I have a question...
I have a lot of 5500PE at 7.75.. nad presently it is at 1.00. What will happen if i do not close this by next thursday. I know it will expire, but what will happen if it expires.. should i pay the excess amount(the brokerages) and other charges from my pocket?
Please let me know.. TIA

Must be a typo -- is it PE or CE?

Okay - so CE --- the options expire worthless and as far as I know there will be no brokerage. BUT just maybe taxes could be levied as Options are auto sqrd off at the exchage on Expiry.
You can ask your brokerage firm re the same, or rather ask another brokerage firm and not with who you have done THIS transaction.

Also AW can help you here since he's more exp and would have come across this situation before ..

 

[Shravan Reddy]

Must be a typo -- is it PE or CE?

Sorry its CE

 

[amitiemcal]

murtaza sir give one phadu tip in stock option

 

[Shravan Reddy]

Must be a typo -- is it PE or CE?

Okay - so CE --- the options expire worthless and as far as I know there will be no brokerage. BUT just maybe taxes could be levied as Options are auto sqrd off at the exchage on Expiry.
You can ask your brokerage firm re the same, or rather ask another brokerage firm and not with who you have done THIS transaction.

Also AW can help you here since he's more exp and would have come across this situation before ..

Thanks SM Bhai...for the reply..will do the same..
Thanks AW..:thumb:

 

[findvikas]

watch out for 5028 level in Nifty Future... a trade below that level can start a big correction...

 

[findvikas]

Long Nifty Fut abv 5048, SL 5036 Tgt 5072,5100

 

[itzarvind]

SM,

Is it good idea to Write 5000PE, its trading around 83 now... spot at 4972.

Am not sure of what to do... My broker urging me to do so....

I dont want to listen to my brokers words.....

Waiting for your reply..

Regards,
Arvind

 

[MurAtt]

SM,

Is it good idea to Write 5000PE, its trading around 83 now... spot at 4972.

Am not sure of what to do... My broker urging me to do so....

I dont want to listen to my brokers words.....

Waiting for your reply..

Regards,
Arvind

Yes you can ....

 

[AW10]

SM,

Is it good idea to Write 5000PE, its trading around 83 now... spot at 4972.

Am not sure of what to do... My broker urging me to do so....

I dont want to listen to my brokers words.....

Waiting for your reply..

Regards,
Arvind

Do you understand what u are doing by writing 5000 PE ? What will happen to it if market falls ? and if market rises ?
It is your money and u need to take care of it. If you are not comfortable or u don't understand it,... stay away.

My suggestion will be - if u don't understand what u are doing in the market.. then don't do it .. You should do all analysis before taking the trade..
otherwise, on next tuesday u will be in TJ asking people again.. about next action.

If your view is market is falling, then this PUT will gain more value then 83. If market goes up.. then u are safe and can keep whole premium of 83 rs..
Atleast in my view, if I read the price action, mkt is shown strength on the days when it is going down.. and it is going up on lesser strength.
So first form you opinion about the market and then trade it..

Broker is doing his job.. i.e getting you trade as much as possible so that they get brokerage/ turnover. But it is your decision, at the end to listen to him, to SM, Vikas, Me or to yourself.

Happy Trading.