Comment on Z5- Getting Started

Milan commented on 24 Aug 2015, 03:33 PM

Hello Nithin Sir,
i have some doubt about option writing …
please can you clarify it ?

1. Suppose i have write Option of,
RELIANCE 900 CE AUG 2015 @ Rs. 45

Before Expiry (let’s say AUG 25th) ….. I want to buy it at current market price ….. say Rs.20.
but nobody is there to Sell This Option ….
so what will happen ? …. i have to wait till expiry day to get cash settled ?

Now Reliance stock price is 890 on expiry.
2. Suppose i have write same Call option. and i’m not buying still it gets expire.
then at 0.05 market price will be my buying price ??
or it will be 0 ?

3. on expiry day i’m not buying still end of the day. then it will be settled as auto buying ……
so at last moment will be Option Price is 0.05 or the value that seller wants to sell ?
suppose someone has place order at Rs.10. and no other seller is available.
But market price is 0.10 of that option.
so can i wait till end of day ?

4. On Expiry day 3:20 Pm will be the final settled time or 3:30 for option buyer/seller ?

Sorry for spelling and poor grammatically mistakes.
i Hope you will get queries.

Thanks.

View the full comment thread »