We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.
There are no key takeaways in this chapter 🙂
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1. Introduction to Options
00:08:41
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2. Option Jargons
00:06:56
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3. Long Call Payoff and Short Call Trade
00:10:05
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4. Put Buy and Put Sell
00:08:30
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5. Summarizing Call & Put Options
00:05:26
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6. Moneyness of option
00:07:10
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7. The Option Greeks – Delta
00:11:25
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8. Gamma
00:05:52
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9. Theta
00:07:39
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10. Vega
00:04:43
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11. Options M2M and P&L calculation
00:04:39
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12. Physical settlement of futures and options
00:06:25
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13. Bull Call Spread
00:06:14
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14. The Straddle
00:06:27
I purchased x shares 1000 nos.( equivalent of one lot ) for Rs.1000 per share in equity segment.
I sell call option at strike price 1050 for premium of Rs.80.
During contract expiry the underlying value becomes Rs.1200.
Kindly clarify what will be my profit / loss.
Also clarify whether brokerage charges will be charged for selling as well as for equity delivery.
Also kindly clarify whether entire margin paid will be re-credited into my trading account or any part only.
Thanks.
Check this chapter – https://zerodha.com/varsity/chapter/options-m2m-and-pl/
Hello ,
By mistake I sold CE (which is illiquid) instead of PE of stock but to hedge I bought future of stock same expiry .
Real Life example 🙂 :
Aarti Ind was at 750 at starting of month , I want to sell it’s Aug PE but by mistake sold it’s Aug CE at 50 [Contact is illiquid only single contact ]
To hedge I bought Aarti Aug Future at 749.50
But on the day of expiry Aarti trading at 799
I do have enough margin available till end but just like to know is what will be extra charges after 0.1% of STT of net delivery values in my case it will be 799 X 850 + 700 * 800 ‘s 0.1% if I am not wrong
I had purchased 4 lot for futures for about 4 laks,but i didn’t exist on the last day.what happens in this case.
The futures contract will be settled physically if its a stock future, cash-settled if its index futures.
Give your views about physical settlement of currency option trading on the expiry day. Is it same as that of index option trading i.e. cash settlement.
What exactly is physical settlement?
Do we need to do anything extra?
Unable to understand this concept
Sourav, I’ve explained this in the chapter itself. I’d suggest you start with understanding cash settlement and then move to physical settlement.