somebody please teach options...!

[niftytaurus]

worthles means loss or no loss no profit??
and what about the profit is it percentage or margin value or simply the entry rate and closing difference

..if u buy put or call first ..i.e ur first trade is long .u have to pay premium...premium is last traded price of that option...its different fro different underlying & strike price ...so if u buy 6000 put @ 50....nifty option 1 lot is 50..so u have to pay 50*50= 2500 rs...u can square it off any time ..if that premium market rate will increase ..so difference of premium is ur profit...if call premium value is 60..u will get 60*50=3000rs..so ur profit is 500 rs( excluding stt ,Brokerage & turnover charges)...but if u want to keep option till expiry, so if market close above 6000...u will get nothing zero...means all 50 rs is gone...but if market closes under 6000..say ..u will get 6000-5970= 30 rs...ur buying price is 50..so atleast nifty have to cross 50 points under 6000 to make u Break even...if nifty is 5900, u will get 100 rs..

now if u want to sell fisrst...u want to short options...then premium account will be credited in ur account..but u have to keep margin money to sell options..that margin money ,u can ask from ur broker..I dont know much about that margin money as i Never short options...but if u sell option..ur profit is limited to that premium value which u got...if u sell 6000 put option ...

U can bought it back anytime when u get profit...means if u sold it @ rs 50 ....& if option price went low @ 40..u can bought it back...that amount will be debited from ur account ....u will get diffrence as profit...& ur margin money will be released....
if u didnt buy t back till expiry, if nifty close 5900..u have to pay 100 * 50 = 5000 to option buyers ...broker reduce that amount from ur margin money & rest amount wil give u back..but if market close 6000 or above..u can keep all premium value & u dont need to give singal paisa to option buyer & ur margin money will be also released..
thanks

 

[anup]

IV(implied volatility) and option greeks..??????

First go to investopedia.com website learn the basics of options like CE(Call),PE (Put),Option Chain, Open Interest,IV,Strike price,Lot size,Lot price,And then if you are thorough with these topics start Option greeks..It will definately take few days/weeks/months to digest all these..Till then keep reading and do only paper trading ....

 

[anup]

Sorry for troubling , i just dont want to be in loss to know these simple things......as what will be what

The things are not as simple as you think, but if you can learn all these one day these things might become simple

 

[lol]

..if u buy put or call first ..i.e ur first trade is long .u have to pay premium...premium is last traded price of that option...its different fro different underlying & strike price ...so if u buy 6000 put @ 50....nifty option 1 lot is 50..so u have to pay 50*50= 2500 rs...u can square it off any time ..if that premium market rate will increase ..so difference of premium is ur profit...if call premium value is 60..u will get 60*50=3000rs..so ur profit is 500 rs( excluding stt ,Brokerage & turnover charges)...but if u want to keep option till expiry, so if market close above 6000...u will get nothing zero...means all 50 rs is gone...but if market closes under 6000..say ..u will get 6000-5970= 30 rs...ur buying price is 50..so atleast nifty have to cross 50 points under 6000 to make u Break even...if nifty is 5900, u will get 100 rs..

now if u want to sell fisrst...u want to short options...then premium account will be credited in ur account..but u have to keep margin money to sell options..that margin money ,u can ask from ur broker..I dont know much about that margin money as i Never short options...but if u sell option..ur profit is limited to that premium value which u got...if u sell 6000 put option ...

U can bought it back anytime when u get profit...means if u sold it @ rs 50 ....& if option price went low @ 40..u can bought it back...that amount will be debited from ur account ....u will get diffrence as profit...& ur margin money will be released....
if u didnt buy t back till expiry, if nifty close 5900..u have to pay 100 * 50 = 5000 to option buyers ...broker reduce that amount from ur margin money & rest amount wil give u back..but if market close 6000 or above..u can keep all premium value & u dont need to give singal paisa to option buyer & ur margin money will be also released..
thanks

Thank you for the brief... I have started to understnd these pe/ce, blah blah...

 

[TraderPRO]

Any upcoming webinars for learning Options. Pls share.

 

[onlinegtrash]

I think traderji guys are totally worthless, wht i asked and wht i got d answer. Everyone seems to be fund managers and trying to drag customers ...

I can't believe people are taking you seriously and trying to help you out despite your insults!

Yeah... i am TJ member and since you asked to teach you options, here is my teaching:

* If your retarded brain can't figure out basic definitions despite having google/youtube and tons of info out in internet,
your worthless ass can't make a dime in options market.

signing out.

 

[trade_beginner]

call ---> when nifty goes up your invested money also will increase
put ---> when nifty goes down your invested money will increase

 

[anup]

call ---> when nifty goes up your invested money also will increase
put ---> when nifty goes down your invested money will increase

But what about IV sir,I have burnt my hands eventhough nifty went up and was holding calls..Bcoz IV got down

 

[trade_beginner]

@ anup I just given one example...about indian market...I don't have more knowledge about market

 

[anup]

@ anup I just given one example...about indian market...I don't have more knowledge about market

I also trade on Indian market only..

I would advise lol to go through all the basic material and then if he have any doubts he should ask, bcoz self learning is the best with the help of other guidance