What is call option and put option who decide the premium
What is square off in options? Dear sir I thank you and your team members for educating the public in stock trading. I am sill learning the dynamics of Option, Just started trading a week ago. If you have sold and option or holding on to an option which is OTM, then you can let just expire without worrying about Sq off on expiry. Some forces tend to increase the speed of the ship, while some tend to decrease the speed of the ship.
Do note — If you sell options, then you will receive the full premium only if you hold it to expiry this is assuming the option you have written turns out to be a worthless option meaning the premium goes to 0. May 15, at 7: Even if we r there we may miss the trade id doing some thing else at the time we are suppose to trade or squareoff the tyrade. Clearly there are two favorable market conditions for the option seller versus one favorable condition for the option buyer. December 7, at
July 17, at 6: The ship battles these forces and finally arrives at an optimal sailing speed. May 7, at 4: Hello sir, I want to know in which indexes weekly options contract are traded and in which nse is going to start? November 17, at 5:
I know its not that straight forward, what is the trend you have observed in your experience. November 14, at 6: September 22, at 7: October 28, at 2:
If you look at the payoff diagram carefully, they both look like a mirror image. December 21, at 5: If the volatility of the stock has increased, then so would the premiums. When he sells, the person buying from it becomes the holder of the contract.
Hi Really nice initiative sir. Simple, thorough, to the point and more importantly most practical guide Congrats. July 9, at 8: January 7, at
This means to say that the option writers earn small and steady returns by selling options, but when a disaster happens, they tend to lose a fortune. Thanks a lot for sharing learning material, it is really helpful for beginners like me to understand the concept and strategy of share market. December 12, at 5: But after reading your article I have developed basic understanding about it. Check the brokerage calculator to figure out the profitability — https:
I hope people will benefit from the same. September 21, at 1: September 29, at 6: Thanks for the immediate reply. If the volatility of the stock has increased, then so would the premiums.