Zerodha....

[megapixel]

Whichever exchange options trade on, you can buy or sell Stock/Index options..

I guess what you are trying to ask is, if stock options can be exercised before expiry(American Options)..

If that is the question, the answer is no... Today all stock options on NSE are European(can be exercised only last day of the expiry) and all stock options on BSE are american(can be exercised anytime before expiry)..

Cheers

Yes. you got my question correctly. Thanks for the clarification.


I find BSE stock options are attractive because I can exercise my rights before expiry and complete trade before expiry. That means I can book profit early .......correct ?

I dislike NSE stock options because traders need to wait till expiry date and only on expiry date he can exercise his right ...some kind of locked in ...no freedom.

Is there any disadvantages(if any) / pitfalls I get if I choose BSE stock options rather than NSE stock option ?

Please guide.

 

[sr114]

Yes. you got my question correctly. Thanks for the clarification.


I find BSE stock options are attractive because I can exercise my rights before expiry and complete trade before expiry. That means I can book profit early .......correct ?Do u want to complete the trade i.e a buy and sell of options /vice versa or u want to exercise ur right of the options? this is the main question

I dislike NSE stock options because traders need to wait till expiry date and only on expiry date he can exercise his right ...some kind of locked in ...no freedom.

actually the completion of trade is a buy and sell or a sell and buy of the options and booking of profit - here no questions arises of getting the scrip.

exercise means the u want to get the scrip at that strike price of the options u have bought. in case of index (nifty/bank nifty/ sensex )its meaningless as no one can give the nifty/bank nifty/sensex where as in case of stock options its feasible.
so decide what u want via an exercise of options - then only can some one can give an answer to ur queries.

sr

 

[madhavareddy1203]

Hi Zerodha,

How u charge 20 rs per trade.

Suppose nifty 5200 option CMP is 80. If i placed order @ 82( 100 lots) it will trade from 82 to 80. R u going to charge 20 rs?? or or per trade 20rs?? can u clear this.
Plz any one ???

 

[soft_trader]

Hi Zerodha,

How u charge 20 rs per trade.

Suppose nifty 5200 option CMP is 80. If i placed order @ 82( 100 lots) it will trade from 82 to 80. R u going to charge 20 rs?? or or per trade 20rs?? can u clear this.
Plz any one ???

If suppose CMP of the contract is 80 and you are placing a limit order @ 82, it will be executed @ market order i.e. the best price available to you. If you want to execute the order in between 80-82 then you have to place a SL-Limit Buy order with a limit price of 82 and with a trigger of 80.

Yes! as long as you are placing a single order you will be charged only Rs. 20/- irrespective of the quantity.

Hope it helps :thumb:

 

[megapixel]

actually the completion of trade is a buy and sell or a sell and buy of the options and booking of profit - here no questions arises of getting the scrip.
sr

I dont want to get the scrip. I want to buy and sell or a sell and buy of the stock options and book profit on or before expiry date at any time.

Now please tell me which exchange (BSE / NSE ) does that ?

 

[sr114]

I dont want to get the scrip. I want to buy and sell or a sell and buy of the stock options and book profit on or before expiry date at any time.

Now please tell me which exchange (BSE / NSE ) does that ?

Every exchange - NSE, BSE will provide this facility of buy-seel or sell-buy without exercising / taking delivery of the scrip

sr

 

[megapixel]

Every exchange - NSE, BSE will provide this facility of buy-seel or sell-buy without exercising / taking delivery of the scrip

sr

Ok. That looks good. Thanks

I think the NSE/BSE difference comes here only when one want to take delivery of scrip ....right ?

scrip delivery / exercise are done in BSE at any time on or before expiry date.
scrip delivery / exercise are done in NSE only on expiry date.

Am I right ? Please correct me if I'm wrong.

You know I am not interested in taking delivery of scrips because that needs lot of funds. I'm interested in buy/sell of stock options or vice versa without delivery/exercise.

 

[sr114]

Ok. That looks good. Thanks

I think the NSE/BSE difference comes here only when one want to take delivery of scrip ....right ?

scrip delivery / exercise are done in BSE at any time on or before expiry date.
scrip delivery / exercise are done in NSE only on expiry date.

Am I right ? Please correct me if I'm wrong.

You know I am not interested in taking delivery of scrips because that needs lot of funds. I'm interested in buy/sell of stock options or vice versa without delivery/exercise.

juat follow what type of options are followed in NSE n BSE- whether American (CA/PA) or European (CE/PE). exercise depends on that. but trading does not depends on that and u can buy and sell options whenever u like

sr

 

[megapixel]

juat follow what type of options are followed in NSE n BSE- whether American (CA/PA) or European (CE/PE). exercise depends on that. but trading does not depends on that and u can buy and sell options whenever u like

sr

Thanks. I guess there are some people who would love to exercise/take delivery of scrip to get dividend ...right ? otherwise there is no point in exercising unless there are some benefits.

I guess if I do buy/sell of stock option without exercise/delivery I may not get dividends.

 

[sr114]

Thanks. I guess there are some people who would love to exercise/take delivery of scrip to get dividend ...right ? otherwise there is no point in exercising unless there are some benefits.

I guess if I do buy/sell of stock option without exercise/delivery I may not get dividends.

actually what u want? u r not clear in ur query?

1.u want to book profit by buy-sell of option.
2. u dont want to exercise the option
3. but u want the dividend part of the stock.

so 1st u must clearly specify what u want, then answers cud be found.