If i have bought a call option at a premium of 20 rs, & after 8-10 days it is trading at a premium of 36 rs, expiry is about 1 week ahead, how can I book my profit and close my position before expiry?
Yes you can book profit or loss any time during market hrs
I am making a profit of 16 rs on a lot of around 400 (6400/-). If i sell my position tomorrow and book profit, will I be considered as an option seller ? do I need margins to sell my position? will I be exposed to a risk of unlimited loss if there is a big movement in stock price and stock settle’s below the strike price of my call option, on the day of expiry?
Here you are exiting (squaring off )your existing open buy position .it is not treated as a fresh sell and hence no margin needed!!
He is trading option without knowing such a simple thing! Now i know why most option trader loss money. Option is the most risky instruments
It demands polished skills. You should atleast go through varsity.
Thanks for your comment.
Would like to bring in your kind knowledge that I am doing only paper trading in options to understand the things practically.
Thanks for replying. Concept is clear now.
Thanks for your reply.