When to buy call and put options

You can square off anytime you wish…. Hi Karthik, Thanks to Zerodha and specially youthe content, flow of information and the examples given by you to make varsity as simple but effective practical guide. Similarly if the buyer is making loss on his position i.

I have a situation here. It is advisable to square off ITM options for reasons stated here — http: I want you to appreciate the fact that all else equal, markets are slightly favorable to option sellers. Thanks a lot for sharing learning material, it is really helpful for beginners like me to understand the concept and strategy of share market. Why is there difference in close price and last price in a snapshot of quote?

Think of it this way — if you give a good artist a color palette and canvas he can create some really interesting paintings, similarly a good trader can use these four option variants to create some really good trades. Some of them are as follows:. So here is my doubt.

December 20, at I have a situation here. This lead to my confusion. Moves like this should not surprise you.

July 14, at 5: In the money or at the money or out of money? For call options in general, see Option law. May 8, at 6:

If you can settle it anytime during the series, then it becomes American. How to square the Nifty call option on Intraday Basis I f one is trading the Nifty on a intraday basis how is the postion squared off? September 28, at December 11, at 4: Irrespective of how the spot value changes, the fact that I have paid Rs.

IF latter is possible how do we do it in real trading world. When does the build up condition meet? November 14, at 3: