Option Buy Recomendations

[tradengrow]

No. Read up on option greeks that tell you how to calculate option prices. Its not just a simple difference.

Index options get closed at expiry i.e. they are squared off. Read up on the difference between exercise and square off. The former doesn't really happen here in India though.

Dear Skarpio,

Yes, we can use options calcultor for calculating the option price at differnt calander days. But question is fro where will we get the annual Interest rate. Volatility (may be we can us VIX from nseindia) , dividend yield etc.

Please suggest these and provdie an example.

Regards

 

[lalpar]

Hi Ghosh Sir,

I squared of my trade for 4400 Put taken at 165 at 161..Markets look postive and may move upwards..So I decided to book partial loss and wait for some time

Regards
Lalith

 

[skarpio]

Yes, we can use options calcultor for calculating the option price at differnt calander days. But question is fro where will we get the annual Interest rate. Volatility (may be we can us VIX from nseindia) , dividend yield etc.

Please suggest these and provdie an example.

IIRC, AW10 has already provided the same here on this forum. Anyway, for all practical purposes, you can assume the rate to be 9%. Use the search function. I'll try to dig it out if possible -- here.

Also, you can try this calculator. Put in

Strike  Price = 4300,
Share Price = 4395 (close, today) 
Time to expiry = 23 
Volatility = 52 and 
Annual Interest = 9

A lot of data is available here.

Dont expect the prices to match perfectly there being liquidity issues.

 

[anjubhatia]

Dear AnjuBhatia,

Hold RCOM call with a SL = 25 (max). RCOM Target around 36. Looks okay on charts.

Satyam looks weak so exit the call. I could not see any liquidity in it.

Regards

thanks, sir
now i hv ifci ca 50 aug at 6, closing is 5.35, wat i can expect in it??

 

[nareshch]

IIRC, AW10 has already provided the same here on this forum. Anyway, for all practical purposes, you can assume the rate to be 9%. Use the search function. I'll try to dig it out if possible -- here.

Also, you can try this calculator. Put in

Strike  Price = 4300,
Share Price = 4395 (close, today) 
Time to expiry = 23 
Volatility = 52 and 
Annual Interest = 9

A lot of data is available here.

Dont expect the prices to match perfectly there being liquidity issues.

NSE India site shows Volatility as 52 . i used it and got abnormal variations for Call /Put prices . Moderator of one of ***** group told me that he sees Volatility of 38% in nifty fut. when i used 38 % the call /put prices are some what reasonable .

Naresh

 

[AW10]

Dear Skarpio,

Yes, we can use options calcultor for calculating the option price at differnt calander days. But question is fro where will we get the annual Interest rate. Volatility (may be we can us VIX from nseindia) , dividend yield etc.

Please suggest these and provdie an example.

Regards

Tradengrow,I will be practicle in assume a reasonable number as interest rate.
When you use the same number to calculate buy price as well as sell price, its impact gets compensated to some extent.
Anyway, we are not here to get the exact option price upto 4 digits after decimal to make money. So a bit of assumption should be fine. Perfectionism is one of the roadblock for successful trading.

Happy Trading.

 

[ghosh_ak34]

thanks, sir
now i hv ifci ca 50 aug at 6, closing is 5.35, wat i can expect in it??

Dear AnjuBhatia,

Hold ifci 50 call with SL=4.5 (MAX). Currently looks bullish on charts.

Expected target could be around 9.

Regards

 

[tradengrow]

Dear Skarpio,Naresh,AW10,

Thanks! I am following the same therory the assumption one. Nice to know that you all are following the same. I was thing that I am doing wrong. Now, this tells me that I am on right track.

--Anil

 

[optionstrader]

IIRC, AW10 has already provided the same here on this forum. Anyway, for all practical purposes, you can assume the rate to be 9%. Use the search function. I'll try to dig it out if possible -- here.

Also, you can try this calculator. Put in

Strike  Price = 4300,
Share Price = 4395 (close, today) 
Time to expiry = 23 
Volatility = 52 and 
Annual Interest = 9

A lot of data is available here.

Dont expect the prices to match perfectly there being liquidity issues.

HI Skarpio and Ghosh Sir,

I tried to calculate the options price, through the link you provided,
with black-scholes analysis, for today's nifty options, Kindly guide if i am correct, and also guide, that since the options value for the calls is 245.5034 and for the puts is 220.0551, so what does it mean ?

Does it mean that we can purchase the options (calls or puts) at the current price, and it will reach (calls-245.5034) or if i buy puts at present price, does it mean that the options price can go till(puts-220.0051).

Kindly guide, as i am not able to understand what the options values, that come after the calculation means, and weather i have calculated it correctly.

The calculation is as follows :
Strike Price :4500
Share price :4500
Time to expiration (days) :23
Volatility (%) :52
Annual interest rate (%) :9

Call Options Value =245.5034
Put Options Value =220.0551


Awaiting your response,

Thanks & Regards,
Optionstrader

 

[lalpar]

Hi Ghosh Sir,

Yesterday I booked partial losses and exopected market to go up and this is after looking at charts .It was a good call

Regards
Lalith