Okay, so exercising options in India has no meaning as all contracts are cash settled. Hi Pls clarify.. My View is that market will remain neutral(that means neither bearish nor bullish) and I also feel that market will be in a very narrow range. Hello Nitin I’d suggest you to read this once, I’d suggest you to read the equity derivative modules on this link. Only certain strikes are liquid. If yes, then that would be very very nice. *For all of you who are beginners to option trading, assume nifty 6000 calls is at Rs 100, if you want to buy it because you are bullish you will need only the premium which is Rs 100 x 50(lot size) so Rs 5000 in premium, the maximum you can lose is Rs 5000. Also, are there any charges for pledgeing in and out shares…there are few who charges and few dont..just want to be clear.. You can send an email to [email protected] with an account opening query with your contact details. Also, is the margin requirement same as the monthly contract (Options). i have a zerodha demat account. If you buy the 12300 put, because you are hedging the position, the margin required drops to Rs 15900/lot for both positions together. 5. Lead - Zinc; Upstox ALGO Tools 2. 2. Bull Put Spread 3. The starter pack is free of cost which includes option strategy, charting, and more. Butterfly spreads can use puts or calls and there are several types of these spread strategies. 3—When my desired price target is achieved then for selling my earlier purchased Option NIFTY PE 8100 what should I do ? So I opted for Zerodha open trade, and I figured out how the futures market works. I am guessing the margin required for NRML would be around Rs 3750 (Rs 50*3*25) for this hedge. You can post these questions on Varsity. Phew, you are starting at the very basic. STT is 0.017% of Rs 3lks which is Rs 51, whereas if you had bought and sold an option with premium Rs 100, the turnover would have been Rs 10,000(5000+5000) and STT of Rs 0.85. It is not within Pi. Interesting tool very helpful for people like me who trade on options. 2. Hello, As we all aware last day in Bank Nifty Expiry is very important and on some days volatility been much higher by the limits been set by you. If others brokers don’t having same sort of limit, why with Zerodha, Dear Sir, How can i trade calendar strategy in PI. If it closes above, it gets expired worthless. 3. I cannot see the implied volatility figures for options. Until we offer it on Kite (a few days away), you will have to sell it through Pi itself. We should have it up in the next two days. The pay off graph is not showing the pay off in between the strike price, say nifty at 5923, corresponding pay off is not showing, which is also vital, Regarding your point 2 (add to my strategy), what I meant was to put my own strike price and check the outcome, for example 5800 and 6000 strike of nifty, whereas in your strategy only the nearest strikes are bundled together, like 5900 & 6000 strike price of nifty. Index Hedging Tools 36. Hello, I want to write a NIFTY 8600 call(1 lot, qty: 75) at 100/- premium with NRML. ok Nitin. 1.1 – Setting the context Before we start this module on Option Strategy, I would like to share with you a Behavioral Finance article I read couple of years ago. hi sir, But after going through your derivative modules again and again I have learnt a lot specially your shorting OTM call options. The main issue is funds in my account as it is just enough to cover the exposure of a particular startegy. how long can i hold and buy? Now I want square off all position with SINGLE ORDER only . The strategy is a combination of bull Spread and bear Spread. If you are trading on banknifty weekly options, we run restrictions on the strikes you can trade on the last day. because I could not run your application on my office desktop. There is a limited amount of risk involved and you can expect limited profit only in this options strategy. Login to ZT and make sure you launch plus while logging in. 2. And also want to know on expiry if nifty close on 8500 …what will be the value of the position and if nifty close 8300 then what will be value of the position I hold. For example I have 1 lakh rupees in my wallet. Thanks and regards. sir i want to ask one small question is there daily settlement price in option too? Short selling and option writing are definitely very different from each other. These features are provided by other brokers trading plat form. Synthetic Call 7. Rs 20 per executed order or 0.01% of the contract value whichever is lower. The trader believes that there will not be much movement in the prices of the underlying asset. Suppose I have bought 8400CE @20 on October 29 contract. Ah my bad, yeah 2.65*375. The window will look like below when you click on the restore button and the prices should start refreshing as the data is fetched from your market watch. This article is very old. NFO – NORMAL – OPTIDX – NIFTY – 29SEP2016 – CE – 8800 – NIFTY16SEP8800CE If you are looking at the SPAN calculator for this by entering product type as NRML, this will be for overnight position and to hold till expiry. I mean If I enter quote like nifty It should give all strikes of calls,puts,all expiries with greeks. It can create confusion especially in BANKNIFTY which has weakly and monthly expiry while NIFTY has only monthly expiry. Could you tell me where is it located in that page? Sell 3 contracts of Bank Nifty March 12200 put for 290 Buy 3 contracts of Bank Nifty March 12300 put for 340 Reviews. please elaborate. Buy average price has no relation to settlement price, can you be more specific. Option Strategy is a tool which we have introduced on Zerodha Trader which suggests you and helps build option strategies. Ideally, you want the calls with strikes B and C to expire worthless while capturing the intrinsic value of the in-the-money call with strike A. The article was titled “Why winnin .. 2.1 – Background The spread strategies are some of the simplest option strategies that a trader can implement. Hedging Tools 44. I too cant emphasize enough the need for Options Chain in Kite and Pi… The calls and puts should be directly tradeable from the Options chain. Really Nice Article. It’s looks like 3 times high from the usual price. more. For all practical purposes, the thought process behind the straddle and strangl .. 13.1 – My experience with Option Pain theory In the never ending list of controversial market theories, the theory of ‘Option Pain’ certainly finds a spot. Your wallet remains the same, But there will be more margin blocked. Find following brief on how to use it: 1. if i buy 1 lot of asian paint 860 CE @10 on 09.03.2015 and sold it @ 20 on 25.03.2015. my profit would be 10*500=5000. If you see on the 4th Snapshot, there is an option to add to my strategy. No there is no daily settlement on buy option positions, so if you bought on 29th May Rs 5000 will get debited (@100) from your account and when you sell at 80, Rs 4000 is credited to your account. While trading in Options, in the expiry date of F& O, we had to close the positions of the particular month. (or the stock) and map it with the right option strategy from your strategy quiver. Am i correct? The margins required for weekly options will be roughly the same as required to the closest expiring monthly contract. On 11-12-2014 I bought PUT 8000 (Exp: 29-1-2014) 400 Qty for Rs. STT is 0.017% of Rs 3lks which is Rs 51, whereas if you had bought and sold an option with premium Rs 100, the turnover would have been Rs 10,000(5000+5000) and STT of Rs 0.85. Definition: Butterfly Spread Option, also called butterfly option, is a neutral option strategy that has limited risk. when I checked the span margin it was rs.37048. But I see some trades such as: XYZ purchased NIFTY16JUL8400PE NFO @ ₹ 21.0, and I am unsure where actually this was traded. Is your operation strategies tool operative now?? Also getting Option Oracle seems like horse’s horn. Hi Venu, checked the link you provided and tried to search “banknifty june 18500” in Kite just as shown in the screenshot at http://tradingqna.com/39158/how-to-add-weekly-banknity-options-in-kite-marketwatch, I am not getting the weekly option but I am getting the chain of options for the month (30th june expiry).Please check before responding.Most Harassive.I am sure this will be the case with MCX commodity options as well once they are launched.Finance minister announced in the budget in February that MCX commodity options will be launched and I am sure you guys are not ready as usual. I bought NIFTY options for 6300PE @ 120 and want to sell them at 134 premium. 1. For options, the contract value is Strike+Premium * lotsize. I have around 3300 rs in my account and trying to buy bank nifty 1 rs PE ,lot size is 40 but it is giving the above message. it will save time as well. If you don’t know how please refer this link. http://www.nseindia.com/NP/nse_paathshaala.htm, Dear All You Can Register on the Above Link of NSE and a Great Way to Learn Options . However margins will be around the same as required for the closest expiry monthly contract. Do check out http://zerodha.com/varsity/ and the option module. 25000/- on 11-12-2014. And I want to hold this till expiry. http://zerodha.com/varsity/module/option-strategies/ is definitely a good place to get started. so i should have a fund for 75*430=32250 rs. Options Premium Analyzer; Design Strategy + Max Pain Calculator; Weekday Wise Strategies 2. Menu. Antriksh, you can send an email to [email protected], we can get someone to call you back on this. Difference is 224.75. +/- 250 points from the current current Index position. Single click not possible on both right now. You will have to take all the legs individually. I am using Kite and PI and also have installed Nest. Also, is there anyone in Zerodha customercare to whom I can talk regarding this? and how to do it , do I PUT a new contract or excersicing means I bought it and sold it as well.I’m confused? is not permitted. Hi, Nifty trading at 5310 then took Iron Condor as follows: Bear Call Ladder 5. I have begged to your team several times that when there is an issue, please communicate to the customers so that they can look for alternatives. I’ll be getting the benefit irrespective of what I buy first. So incase like last week there is 20 % moment and unitech is down suddenly to 18 or below or say even upto 15….would my positions be auto square off…, If I buy a Unitech Future for October @ 20.00 and simultaneously buy Unitech October 20 put say @ 1.55 and sell unitech 25 call @ 0.40, In this case my max loss would be 1.15*17000. Not decay in stock price, but there is time decay in options premiums for sure. Actually I was looking for Option Strategy Payoff chart. Best regards I was wondering if you guys could open an official forum for Zerodha members so that we could help each other out instead of disturbing the faculty. 3. Similar to the Bull Call Spread, the Bull Put Spread is a two leg option strategy invoked when the view on the market is ‘moderately bullish’. Is it possible with Zerodha kite or PI. Because in the future index the price of Nifty July is something around ₹ 8,555 and in the option index it’s ₹ 0.40. Design Own Options Strategy; Weekday Wise Strategies 1. If others brokers don’t having same sort of limit, why with Zerodha. How is the brokerage calculated for options? Spreads are multi leg strategies involving 2 or more options. Straps Bearish Spreads 1. is there any chance it might come back. i am new to options trading. When you buy calls, profits are unlimited but the risk is limited to the premium you pay. hi nithin The option chain bit will take a little longer. Yes PS, we provide SPAN margin benefit and we have a [SPAN Calculator](https://www.zerodha.com/z-connect/blog/view/span-calculator) which lets you simulate a position like what you have mentioned and also tells you the margin benefit before taking the trade. Kite should have the weekly options in the next two to three days. About Strategy: Long Call Butterfly is a neutral strategy where very low volatility in the price of underlying is expected. Do Zerodha provide Span margin on options Ex: Date=25 Jan 13 Nifty=6000 You and your team never believes in that. As it is going up, remaining 60k keeps reducing? But if I only sell options for the same my margin requirement will be quite high around 70-80k. just awesome. On the trading platform, your profits for today will show based on the closing price of the options for yesterday and not based on your buying price and this is the reason you are seeing a loss and not profits on the platform today. Please help me in understanding the technicalities and fundamentals of this. How would you do this and more i .. 7.1 – Spreads versus naked positions Over the last five chapters we’ve discussed various multi leg bullish strategies. YOu can also go to the admin positions link, and click on the square off option. But there are days when market could go up but calls premium could loose you money when the implied volatility drops, for example today, even though market is up call premiums are down. 4. No, when you short options, the margin blocked will keep going up when in loss. Hi , You can’t compute weekly option margin using the margin calculator. .. 5.1 – Background The ‘Bear’ in the “Bear Call Ladder” should not deceive you to believe that this is a bearish strategy. am i right? 2) why the various details are not displaying correctly in Pi.