Options Writing.

[sangfroid22]

HI Fellow traders,

I've incurred heavy losses by trading in Options segment. Nevertheless, I've also benefited from it in terms of knowledge.

Coming to the point, I've a query ragarding OPTIONS WRITING.

I'm using Sharekhan broker. My broker allows me to BUY call option or put option. On the contrary, when i try to SELL a call or put option, my transaction gets rejected with remarks "Alert !!! Options writing is not allowed for this group".
I'd like to know how to sell (Write) a Naked call or put option in sharekhan. If this feature is not available in sharekhan, then kindly let me know list of other brokers who allow Options Writing.

Help appreciated.

Sangfroid

 

[nagendra_gb]

my friend as i know icici is the only one which allows for retail people. Option writing can fetch huge profits if u do it carefully. Am following it from quite some time

 

[praveen taneja]

my friend as i know icici is the only one which allows for retail people. Option writing can fetch huge profits (AND HUGE LOSSES TOO)if u do it carefully. Am following it from quite some time

sorry bro for entering in ur advice

 

[Capricorn]

HI Fellow traders,

I've incurred heavy losses by trading in Options segment. Nevertheless, I've also benefited from it in terms of knowledge.

Coming to the point, I've a query ragarding OPTIONS WRITING.

I'm using Sharekhan broker. My broker allows me to BUY call option or put option. On the contrary, when i try to SELL a call or put option, my transaction gets rejected with remarks "Alert !!! Options writing is not allowed for this group".
I'd like to know how to sell (Write) a Naked call or put option in sharekhan. If this feature is not available in sharekhan, then kindly let me know list of other brokers who allow Options Writing.

Help appreciated.

Sangfroid

Why don't you talk to the broker for access to option writing?

Of course any form of trading is detrimental to the health of your capital if you don't knw what you are doing.

 

[dumdum20008]

HI Fellow traders,

I've incurred heavy losses by trading in Options segment. Nevertheless, I've also benefited from it in terms of knowledge.

Coming to the point, I've a query ragarding OPTIONS WRITING.

I'm using Sharekhan broker. My broker allows me to BUY call option or put option. On the contrary, when i try to SELL a call or put option, my transaction gets rejected with remarks "Alert !!! Options writing is not allowed for this group".
I'd like to know how to sell (Write) a Naked call or put option in sharekhan. If this feature is not available in sharekhan, then kindly let me know list of other brokers who allow Options Writing.

Help appreciated.

Sangfroid

ok,

As an answer to your query--

1)Sharekhan's requirement for option writting is to maintain portfolio ( cash+stock) worth 3 lack with them. I ran away when their toll free call center told me this.

2) As a shot of luck, i came to know about rkglobal, next day they confirmed option witting is as easy as buy/sell by fullfiling margin requirement. With in one week i started trding in rkglobal with lowest brokerage in my 8 year of trading life.

3)Now im happy as i have tested all theoritical option combo/strategy in real trading and they become fesible because of low brokerage.
For example:
a) one trade(buy+sell) of Nifty option costs approx brokerage(including brokerage+taxes etc.) of Rs.30-33, which converted to points comes to 0.60-0.66 Nifty points ( 30/50 or33/50). Man u will make profit even on 1 Nifty point square-off of option.
b) Margin requirement on combo will be considerable less due to spaning.
If Naked Nifty option wrtting require 22k-27k as margine then a spread require 9k-14k ( it depends upon the option legs).

for better calculationof brokg. have a look on my friday's Cnote, u can see i have chrged total broke of Rs 53 on two trades.

 

[santaji4]

Dear dumdum20008

Thanks brother you information with example is really nice

Santaji

 

[siddharthpathak]

HI Fellow traders,

I've incurred heavy losses by trading in Options segment. Nevertheless, I've also benefited from it in terms of knowledge.

Coming to the point, I've a query ragarding OPTIONS WRITING.

I'm using Sharekhan broker. My broker allows me to BUY call option or put option. On the contrary, when i try to SELL a call or put option, my transaction gets rejected with remarks "Alert !!! Options writing is not allowed for this group".
I'd like to know how to sell (Write) a Naked call or put option in sharekhan. If this feature is not available in sharekhan, then kindly let me know list of other brokers who allow Options Writing.

Help appreciated.

Sangfroid

Sharekhan is definately allowing option writing, help me with your branch and city... if i can help you out... otherwise you may approach other brokers like:

Anagram Stock broking ltd.(www.moneypore.com)
Kotak Securities (www.kotaksecurites.com)
Motilal oswal securities
karvy
Marwadi shares and finance ltd.

and many others

 

[sangfroid22]

My Trading A/c is with Sharekhan, Ameerpet branch, Hyderabad. Kindly, let me know if they allow naked call/put WRITING. If not, let me know other brokerages which allow naked writing.

Help appreciated.

Sangfroid.

 

[Placebo]

Hi .From a long time pricing of options has been a cause of concern for me .. I know that there is no exact math that could accurately price it. However the models i have used before on paper trades have been Black-Scholes and Binomial Model. However there is a limitation in these models . Price distribution has been LogNormal , whereas Probability Distribution would provide a more accurate measure (in my opinion). How do you guys price the options ? And if possible can anyone explain how does time value eat up the premium in options ? If its not too much to ask maybe an example would be wonderful.

Thanks In Advance

Cheers

 

[knarendra]

Hai,
Try bajaj capital. It charges 2.5% of the premium value.