What is call option and put option who decide the premium


So, which one is better, to square off beforehand or wait till expiry, if there is no risk of incurring loss? December 20, at 8: Further we looked at four different variants originating from these 2 options —.

February 13, at August 28, at 1: But at the same time, you can choose to sell it before expiry, anytime after you initiate the position. December 11, at 4:

September 8, at 1: Now if the price moves to and premium is now at 3 so would be my profit?? June 29, at 4: Futures Trading 12 chapters 5. What happens if there is a loss in the options premium at the end of the trading day?

So here is my doubt. May 9, at 9: When he sells, the person buying from it becomes the holder of the contract. Most of the traders are interested in initiating a trade now and squaring it off in a short while intraday or maybe for a few days and capturing the movements in the premium. July 16, at 4:

September 2, at However for the option buyer to be profitable, the market has to move in a certain direction. Sorry karthikthat was a wrong doubt i posted above.

December 31, at 8: September 10, at 6: Little confusing kindly clarify me. July 19, at 3: August 28, at 7:

You can trade it based on your view. July 17, at 6: September 11, at 5:

The minimum value for this option should be This means to say that the option writers earn small and steady returns by selling options, but when a disaster happens, they tend to lose a fortune. A follow up question: If you feel bullish, buy the call option …if you fee bearish, buy the put option. They are very similar with very little difference I guess.

May 30, at 6: Karthik, If suppose I have bought one lot 75 of Nifty CE premium of 80 and now its premium at The price is not pegged to any particular time frame.

Please find below the pay off diagrams for the four different option variants — Arranging the Payoff diagrams in the above fashion helps us understand a few things better. September 22, at 8: Please explain with example. Let me list them for you —. June 19, at