Option NewBie Query

[DiwaliCrackers]

Hi Guys,

I am new in option, and got some article to learn it but i have some queries regarding, may be this is very simple for you, but i am newbie here
1.) Sharekhan is charging 2.5% of Brokarage(Options), so it is on Strike Price or Premium Price.
2.) What is Buy/Sell CE and Buy/Sell Put
3.) If i got XYZ CE@100 @ 2.1(Premium) then If Current rate is 1.8(Loss) or 2.5(Gain)(Premium), then to sell this
Call do i need to Buy this contract(do i need to put all money)
4.)Can i Sell My PE or CE before Expire date.(for that i need to buy this whole contract(do i need to pay whole margin))

 

[sumeetsj]

Hi Guys,

I am new in option, and got some article to learn it but i have some queries regarding, may be this is very simple for you, but i am newbie here
1.) Sharekhan is charging 2.5% of Brokarage(Options), so it is on Strike Price or Premium Price.
2.) What is Buy/Sell CE and Buy/Sell Put
3.) If i got XYZ CE@100 @ 2.1(Premium) then If Current rate is 1.8(Loss) or 2.5(Gain)(Premium), then to sell this
Call do i need to Buy this contract(do i need to put all money)
4.)Can i Sell My PE or CE before Expire date.(for that i need to buy this whole contract(do i need to pay whole margin))

1. Its on premium price, on the price which equals strike * premium

2. Buy /Sell CE - buy or sell a Call European option. All options are european options in our markets now.
Same with Put. So if u are bullish - buy a CE or sell a PE. And if u are bearish - Buy a PE or Sell a CE (CE--> Call European whereas PE--> Put European)

3. You can trade only on the premium. Need not buy full contract.

4. Yes, u can sell before expiry date. No need to buy whole contract.