What is the expiry time of nifty option?
BANKNIFTY monthly options contracts expire on the last Thursday of the expiry month and weekly options contracts expire on every Thursday of the week. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.
How much capital is required for option selling?
That means with a capital of Rs 2,00,000 one should allocate no more than Rs 10,000 each trade and two parallel trades can be opened at a time.
What happens when a put expires?
If the option expires profitable or in the money, the option will be exercised. If the option expires unprofitable or out of the money, nothing happens, and the money paid for the option is lost. Conversely, a put option’s premium declines or loses value when the stock price rises.
How options are settled on expiry date?
Final settlement loss/ profit amount for option contracts on Individual Securities is debited/ credited to the relevant CMs clearing bank account on T+1 day (T = expiry day). Open positions, in option contracts, cease to exist after their expiration day.
How much money do you need to sell Nifty options?
For one lot of nifty option selling, you need around Rs 50000 ( exact amount depends on the nifty value and the prevailing market conditions at the time of option selling ).
What happens if we don’t sell options on expiry?
If you don’t sell your options before expiration, there will be an automatic exercise if the option is IN THE MONEY. If the option is OUT OF THE MONEY, the option will be worthless, so you wouldn’t exercise them in any event.
How do I choose nifty options?
You can type “Nifty Weekly” to see the weekly contract in the drop-down, and you can select the contract you want to trade. You can also type in the trading symbol [Nifty] followed by the strike price. You’ll see a drop-down of the existing contracts for that strike price.
What happens if nifty option expires in the money?
A put option, which gives the holder the right to sell a stock at a specified price, has no value if the underlying security trades above the strike at expiry. In either case, the option expires worthless. For marketable options, the in-the-money value will be reflected in the option’s market price.
What happens if you buy a put and it expires?
https://www.youtube.com/watch?v=kb31GavlJq0