I have read thousands of articles about options on internet including zerodha varsity but still,my doubts are not getting cleared.
**1)**Suppose price of Airtel equity is trading at 800 and Call options 900 trading at premium 3RS.
If airtel equity price goes up to 830 then this mean premium of call option 900 will also increase .Right?
**2)**Suppose ITC call option 350 is trading at premium 2 RS .I found it bullish and buy 1 lot(1000 quantity) of it. Now total premium is 1000 *2=2000
On the very Next day ,the premium goes up to 3rs… I sold it. here i get loss of 1000 rupees.Right?
calculation is (3-2)*1000 quantity - 2000(total premium on which i buy)= -1000(minus thousand)
**3)**I’ve taken two screenshoots on two different date i.e 3rd july and 5th july
**I’ve seen in youtube videos then most of people prefer pi software for call trading .Is there any difference between trading on call option on mobile kite and pi desktop software.
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6) One of the zerodha moderator on this forum says option is less risky because of limited loss but the irony is that moderator himself does trading in future trading.I’ve seen his portfolio in one of his youtube video.
If option is less risky then why would anyone does trading in future .
No, you have profit of 1000
Just think as you bought equity share at 2 and sold at higher price 3
but do not apply this concept at date when Option get expired because at that time you may get stuck in STT trape.
For beginner kite and mobile app is very easy to understand and useful.
As you progress and spent time in Stock market you will gradually find many tools
and PI is one of them which provide many features.
First of all FnO is much risky than equity.
In option premium price decrease over the period of time, check Time decay of Option.
Future is safer than Option because in Future their is no concept of Time Decay
but money required in Future is comparably much higher than Option.
Please note do not trade in Option at last 2 weeks of Month because at that time Option
premium price decrease very rapidly.
Like in equity share,we need full margin for delivery trading…for instance if ITC share price is 300 . I want to buy 10 share in delivery so i need 3000 rupees in my account.
does the same logic apply on option as well.
In case of option,suppose the premium of ITC share is 5 Rs and i want to buy1 lot(1000 quantity) in delivery so i need only 5000 rupees in my account.Right?
and i can sell that option on any day by my wish .Right?
full cash means ?
suppose the premium of ITC share is 5 Rs and i want to buy1 lot(1000 quantity) in delivery so i need only 5000 rupees in my account.Right?
and i can sell that option on any day by my wish .Right?
if i find a particular stock going to be bearish in next some days then either i first sell call option or buy put option.it will make no difference. In both ways,i will earn profit if the stocks favours me as per my expectation.Right?
Yes, your understanding is correct. But do keep in mind that Option selling involves unlimited risk also you shall required to place margin for selling the options. Where as buying the option requires only the premium amount to be paid upfront.
Seriously It seems options are very very confused. The more i understand,the more i get confused.
Anyways
Suppose if i buy the stock option first then i need only premium and when i am selling the same stock then at that time, did i also need margin or not? or That criteria of margin which u r saying only applies when we sell option first and later buy it.
Margin is required only if you sell option first (SELL to open). If you have already bought the option and the same option you are selling (SELL to close the position) then no margin is required.
