Yes, please do check this – http://zerodha.com/z-connect/queries/stock-and-fo-queries/stt-options-nse-bse-mcx-sx ashit says: May 18, 2017 at 6:57 pm That means we can square off at any point of time (before or on expiry) 1. Before expiry we have to pay the brokerage twic...
Alternatively, you can buy it yourself through a trading terminal such as Zerodha Pi We will get into the technicalities of buying and selling options via a trading terminal at a later stage. Now assuming I have bought Bank Nifty’s 18400 Put Option, it would be interesting to observe the ...
Buy a Put Option when you are bearish about the underlying prospects. In other words, a Put option buyer is profitable only when the underlying declines in value. The intrinsic value calculation of a Put option is slightly different from the intrinsic value calculation of a call option. ...
Well, this is exactly where the ‘Delta of an Option’ comes handy. The Delta measures how an options value changes with respect to the change in the underlying. In simpler terms, the Delta of an option helps us answer questions of this sort –“By how many points will the option premiu...
If you have 2 ATM options = delta of the position is 1 So, for every point change in the underlying the overall position also changes by 1 point (as the delta is 1). This means the option mimics the movement of a Futures contract. However, do remember these two options should not be...
Step 1– The link to the Margin Calculator ishttps://zerodha.com/margin-calculator/SPAN/. As you can see from the image below, many different options are available (I have highlighted the same in black). However, our focus, for now, will be on the first two options called ‘SPAN’ an...
Of course, do remember eventually the idea is to discuss Vega and its effect on options premium. Key takeaways from this chapter The daily returns of the stock is a random walk, highly difficult to predict The returns of the stock is normally distributed or rather close to normal distribution...
Blog Posts tagged "Bearish" What could ruin the party for an all-time high Nifty? Vineet Rajanion December 1, 2023 In the blink of an eye, the year 2023 is wrapping up. After gaining about 5.5% in November 2023, the Nifty 50 index is hovering near its all-time high, which was ...
We launched Varsity 8 years back using this cover image and this was what we planned to attempt. Excerpts from the original post: At Zerodha we took