Option Selling Option Writing In Indian Stock Markets


Option Option Markets In Writing Stock Indian Selling


Nifty options is shorted when a trader believes that option is going to expire worthless, such time its best to write nifty options rather than going long. Traders short sell nifty options when they see nifty future to be trading in a range and will continue for some time. In such ranging market environment nifty option trader can short sell out of money nifty call option and out of money nifty put option.

Let me show you how much margin is required for short sell nifty option, in other words its nifty option writing. Short selling nifty options require margin of nifty future, ie if you want to short sell nifty option you will require Rs.30,000 for executing your trade. This is because option writing has unlimited risk, while limiting profit to premium receiveIf you a trader, then at one or other time you have heard Option Selling Option Writing In Indian Stock Markets even considered Option Selling(Or option writing).

Instead, you were perhaps recommended to buy options, if at all you want to trade in options at first place, as it carries limited risk of the premium you pay.However, after trying to trade in future and losing more money than I made profits I am now trying trade in option selling. Ofcourse, it has theoretical unlimited risk. But as in theory, an option buyer has prospect of unlimited profit, but in real he never has unlimited profit.

Option Writing or Selling is pretty popular all across the globe.When an option buyer loses money, an option writer gains that money lost by an option buyer.An Option writer gains as time erodes and as expiry nears. Options premiums drop rapidly on all Options contracts which are out of money (No Option Selling Option Writing In Indian Stock Markets value). An Options writer gains in all these contracts.Margin required for writing an Options contract in ICICI Direct varies between 15,000 to 30,000 Rupees.

The disadvantageS.Andrew from Middle East telling his 3 Year Experience with - Call us at 09239 17 42Options Writing,Best Stock Options,Best Trading Strategy India,Nifty Futures,Nifty Options,Stock Futures,Stock Options,Nse,Intraday Trades India. All the content and tools are provided on thesite solely for educational and informational purposes. Any security symbol (Stock,options or futures) shown on the site is for illustrative purposes and not a recommendationto buy or sell.

Options trading has inherent risks and is not suitable for all investors.An investor should do their own due diligence before trading. They are exactly opposite of Put options, which give you the right to sell in the future. In this section, we will look at Call options.




Option Selling Option Writing In Indian Stock Markets

Option Selling Option Writing In Indian Stock Markets

Option Selling Option Writing In Indian Stock Markets



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