5. The Put Option Buying ← Previous Chapters Next → 5.1 – Getting the orientation right I hope by now you are through with the practicalities of a Call option from both the buyers and sellers perspective. If you are indeed familiar with the call option then orienting yourself to understa...
If you go through the charts carefully you will realize that the conclusions for the Call options holds true for the Put options as well. Given this we can generalize the best practices for buying options – So the next time you intend to buy a naked Call or Put option, make sure you ...
Besides the fixed assets under the non-current assets, there are other line items as well. Here is a snapshot of the same: Non-current investments are investments made by ARBL with a long term perspective. This stands at Rs.16.07 Crs. The investment could be anything – buying listed equ...
Here I’m adding the value of delta since I know that the value of a Put option gains when the underlying value decreases. I hope with the above two Illustrations you are now clear on how to use the Put Option’s delta value to evaluate the new premium value. Also, I will take the...
New Delta = We know the Put option gains delta when underlying goes down, hence – 0.5 + (-0.04) =– 0.54 Now, here is a trick question for you – In the earlier chapters, we had discussed that the Delta of the Futures contract is always 1, so what do you think the gamma of th...
Do remember that if you are short/written options (sold first), you have already paid STT and it doesn’t matter if you buy the options on the exchange or hold them till expiry to square off, there is no STT on the buying side. ...