What is an Option Contract?
An option is a contract giving the buyer the right, but not the obligation, to buy or sell shares of an underlying security at a specific price on or before a certain date.For example: Company ABC's shares trade at Rs. 60/- , and a call writer is looking to sell calls at Rs. 65 /- with a one-month expiration. If the share price appreciates to a price above Rs. 65/- , referred to as being in-the-money, the buyer calls the shares from the seller, purchasing them at Rs. 65/-
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An option is a contract giving the buyer the right, but not the obligation, to buy or sell shares of an underlying security at a specific price on or before a certain date.
For example: Company ABC's shares trade at Rs. 60/- , and a call writer is looking to sell calls at Rs. 65 /- with a one-month expiration. If the share price appreciates to a price above Rs. 65/- , referred to as being in-the-money, the buyer calls the shares from the seller, purchasing them at Rs. 65/-
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When both cash and collateral margins are available, which one is utilized first? What is the order of utilization?
What is the margin blocking percentage during the end-of-expiry week for physical settlement of stock option contracts?
Can I do intraday trading in stock options?
When does expiry take place for Nifty, Bank Nifty, Sensex, Bankex, and stock option contracts?