On expiry every call or put option premium comes down what happen if I short sell call option and buy back before market close every time I will get profit or rare chances of get profit??
Looks like a good idea from the outside…
Due to high volatility, there is a possibility you could loose more than you can afford before you know it.
Situations like this happen very often on expiry days.
On last week of expiry in option stock if I short sell both call and put option and buy it again before closing market what will be the result I will be in profit or loss
E.g L &T as on 24 th August 2017
Strike price 1140
Call option premium
Open : 8.70
Close : 8.10
Difference : 0.60 Ă— 750 = 450
Put option premium
Open : 20.50
Close : 15.20
Difference : 5.30 Ă— 750 = 3975
If I short sell option option and buy before market close estimated profit is 3975 + 450 = 4425
I want to know every time will get profit or rare changes of geting profit
Really depends
If your are shorting a option
Pl check the stock before doing so
Its possible that a option may have a drop/rally during its just before expiry week, putting you in a tough position
Infosys last wk is a good example
Ppl who thought infy will rally due to buyback & shorted 940 or 960pe,since infy stock was st 1020â‚ą
These ppl would have been in a tough position after sikka resigned.
So research short term factors of the stock that your are shorting, before actually shorting
Dear ZERODHA, @Siva Can we Buy Natural Gas “OPTIONS” on expiry day or a day before ?
We will square off the position before the expiry time.
You can buy commodity options a day before. Fresh positions are not allowed on expiry day. You can refer to this sheet, and this article for more information.
Dear Sir, Yesterday I tried to buy NATURAL GAS Options which was rejected.
You may check my A/c ZQ9201.
@ShubhS9 In the sheet, it is written as NG options is allowed even on 25.05.22.
But I can not keep the options for market watch as it is not available.
You can create a ticket at support.zerodha.com. Team will have this checked and assist.
It is for futures contract. The May series option contracts stopped trading on 23rd May with ITM contracts devolved in futures. You can trade in June series options.
@ShubhS9 Sir, If I trade Options on 22nd & willing to book on next day,
How can I order if it can’t be keep in watch list ?
Natural Gas Options expire two business days before the expiry of the futures contract. So if the futures contract is expiring on the 25th, options will expire on 23rd (Given there are no holidays). On expiry day, the OTM options will expire worthless, while ITM options will be devolved into futures. You can check out more details here.
If you have an open position, you can exit your positions on expiry day but will not be able to take fresh positions in option contracts.
I understood Sir. Suppose I have traded on 22nd & willing to book on 23rd.
I am unable to keep the same in watch list. How can I understand where to book ?
You will be able to add the contract to the marketwatch even on the day of expiry.
Don’t misunderstand for the continuous messages.
I & some others have already tried it on 23rd & 24th.
I have checked it with Zerodha & Astha but in vain.
Now it is not possible to show the screenshots.
You are requested to check it from the authorities & try it in the June expiry.
@ShubhS9 Sir, As per MCX, NG Option contract will expire on 23.06.22 & the Future expiry is on 27.06.22.
Please clarify, can I carry the options on 26th/27th June ? How to exit if it not in watch list ?
Take your time for complete confirmation as I have plenty of time to trade for expiry.
Information for everyone…
Expiry for Options & Futures are different. We can’t trade Options on Futures expiry or prior to 2-3 days before Fut expiry.
Right, as I explained above.
Dear Sir, Today ULTRACEMCO 6400CE was closed at 127.7. When I tried to place AMO-SL order @ 140, it is getting rejected (reason : not in limit). Why ? Please explain. @ShubhS9
Working fine for me. Could you place DM me screenshot so I can assist you further?
