What is put options and call options


Now If I square off my position I will get including profit. May 6, at The calculation provided by karthik in chapter 3 is for expiry calculation on expirt date. Moreover, the dependence of the option value to price, volatility and time what is put options and call options not linear — which makes the analysis even more complex. However, in India all options are American, which can be exercised only on the day of expiry.

Let me list them for you — Let us start from the left side — if you notice we have stacked the pay off diagram of Call Option buy and Call option sell one below the other. February 1, at 6: Thanks for that and hope that further chapters will also come the same way.

Please clarify sirthanks!! If you look at the payoff diagram carefully, they both look like a mirror image. January 7, at 7: We will be discussing SL based on Volatility very soon.

June 7, at 6: The ship battles these forces and finally arrives at an optimal sailing speed. The calculation provided by karthik in chapter 3 is for expiry calculation on expirt date. November 16, at 9:

I feel that I should make a profit out of it. When the option turns worthless, you get to keep the entire premium. The CE premium opened the day at Rs. June 9, at April 18, at 3:

In such situations, selling the option would be a better deal than buying the option. You can square off anytime you wish, but exercising is only on the expiry day, and it does make a huge difference on when you can exercise your contracts. Hi Sir, excellent explanation.

When you hold the written option to expiry, its not referred to as exercising the option. December 28, at Fundamental Analysis 16 chapters 4. It has been mentioned time and again the Option contracts have to be held until expiry following European Call format.

Crudely put, some Option Greeks tends to increase the premium, while some try to reduce the premium. Sir where can we find historical call and put data for contracts that has already expired, say for the past one year? In other words, do not buy a call option or do not sell a put option when you sense there is a chance for the markets to go down. If you can settle it anytime during the series, then what is put options and call options becomes American.

Simple, thorough, to the point and more importantly most practical guide Congrats. More about here — https: What would be if I exit position now. September 7, at 2:

November 16, at 2: The price of the call contract must reflect the "likelihood" or chance of the call finishing in-the-money. Please correct me if im wrong. I would like to know the following things. In such situations, selling the option would be a better deal than buying the option.