Intraday calls for 26-06-14
Markets likely to open flat. Resistance for Nifty is at 7600 and support at 7480
No pre-market call for today. Continue to hold Cipla.
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Prateek Says:
June 26th, 2014
Posted at: 9:43 pm
Hi CB,
I am not clear on how option expiry works.
If i buy 7400 CE option @ 50 premium and Nifty closes 7480 on expiry date.. What would i earn?
NIZ Says:
June 26th, 2014
Posted at: 9:48 pm
sir today i missed pvr high. wat will be tomorrow target
NIZ Says:
June 26th, 2014
Posted at: 9:59 pm
sir will market fall further?
Nb Says:
June 26th, 2014
Posted at: 10:00 pm
Sir today one life cap has moved insanely,any news as its trading with much higher volumes??
rajasekar Says:
June 26th, 2014
Posted at: 10:02 pm
Hi CB, HI, CB or KK.,
can u forward the mail regarding the trade in Futures / Options......How to learn..any idea? or any websites
CB Says:
June 26th, 2014
Posted at: 10:11 pm
Hi ibull, :)
Hi Prateek, it depends.. usually around 120-130
Hi NIZ, can add 10-12rs tomorrow
Hi Nb, no, dont see any news on it. managed to bounce back from support levels
Hi rajasekar, sure.
PRADIPTA Says:
June 26th, 2014
Posted at: 10:21 pm
hello sir i want to do SIP every month approx 2000-3000 for minimum 5 year to 10 year. which is best for SIP mutual fund or equity, and if mutual fund then which is best mutual fund is best if equity then which is best equity??
Prateek Says:
June 26th, 2014
Posted at: 10:23 pm
Hi CB,
If premium closes at 80 then for 1 lot bought @ 50 premium would fetch me anything?
Prathmesh Says:
June 26th, 2014
Posted at: 10:31 pm
CB sir thnx for response..please tel me will Cipla may touch 433 tomorrow? as I have bought this on margin 1st time...cant pull in next week..what should I do?
ibull Says:
June 26th, 2014
Posted at: 10:35 pm
Hi Prateek, Simple calculation. If Nifty expires at 7480, your 7400CE, will be worth Rs. 80 at expiry. Calculation of premium in this case is Settlement Price minus Strike Price. This is because the Strike Price of your CE is less than the Settlement Price and therefore "in the money".Therefore 7480-7400=80. Now, you paid Rs. 50 for the call and you get Rs. 80 at expiry. Therefore your net income is Rs. 80 - Rs. 50 = Rs. 30.
I have not taken into account any brokerage,taxes etc.
I hope this explains
Prateek Says:
June 26th, 2014
Posted at: 10:37 pm
Hi ibull,
Thanks a lot.. So its always better to take delivery if you are in the money..
K K Says:
June 26th, 2014
Posted at: 11:05 pm
Hi ibull,
Hi CB,
Good inputs on Options concepts.
Hi CB, There is one more question pending for the day from finfreak Please answer to it as well. It is also option concept.
Please forward me the Future & Option study material if any to [email protected]
CB Says:
June 26th, 2014
Posted at: 11:09 pm
Hi PRADIPTA, Principal Growth Fund (G) is a good one
Hi Prathmesh, hold with sl at 421 for now. possible sees a bounce tomorrow
Hi ibull, thanks for the detailed answer..
CB Says:
June 26th, 2014
Posted at: 11:10 pm
Hi K K, sure.. have emailed.
TradeWarrior Says:
June 26th, 2014
Posted at: 11:16 pm
Hi ibull, thanks got it !!
ibull Says:
June 26th, 2014
Posted at: 11:17 pm
Hi Prateek, You are welcome. The word "delivery" comes into picture in case of Equity Stocks, wherein you buy and transfer your stocks to your demat account. In case of options, after you buy and till the time you sell, that period is known as "holding". You are basically holding the option. Futures and Options are contracts and hence you cannot take delivery or transfer contracts in your demat account.
Now to your query. Is it better to hold options if you are in the money? It depends. Because till expiry, at any point in time your in the money option can become at the money or out of the money depending on the movement of the underlying.
Therefore the simple thing which a trader of an option does is, he buys the option by paying a premium and after a period of time if the premium increases, he sells and takes profit. He also keeps a stoploss like he does in any other trade :)