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nifty index options - european or american style? |
grizzlybull
White Belt
Joined: 26 Sep 2010
Posts: 80
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Post: #1  Posted: Sun Nov 18, 2012 3:45 pm Post subject: nifty index options - european or american style? |
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Hi,
I do not like european options as they don't allow you to exercise the option anytime before expiry. It seems the stock options are european style. What about nifty and minifty options? are they also european style or are they american style where we can exercise them any time before expiry? |
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pkholla
Black Belt
Joined: 04 Nov 2010
Posts: 2890
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| Post: #2 Posted: Sun Nov 18, 2012 5:55 pm Post subject: |
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Hi Grizzly: Read the economic papers. if they quote prices as say CA 5700 then they are American type options, if say CE 5700 then European type. I think all options in NSE are European Type. Dont know about the new options available in BSE or to be intro in NCX-SX!
However you can always "expire" your bought/ sold option in NSE by selling/ buying and thus squaring off, any time!
Another important difference with US is that in India settlement is always by cash. No share is bought or sold as a consequence to holding an option
Try to get hold of "options trading 101" by Bill Johnson: grassroots to clouds, everything is covered.
Cheers, Prakash Holla |
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grizzlybull
White Belt
Joined: 26 Sep 2010
Posts: 80
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| Post: #3 Posted: Sun Nov 18, 2012 6:13 pm Post subject: |
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| pkholla wrote: | Hi Grizzly: Read the economic papers. if they quote prices as say CA 5700 then they are American type options, if say CE 5700 then European type. I think all options in NSE are European Type. Dont know about the new options available in BSE or to be intro in NCX-SX!
However you can always "expire" your bought/ sold option in NSE by selling/ buying and thus squaring off, any time!
Another important difference with US is that in India settlement is always by cash. No share is bought or sold as a consequence to holding an option
Try to get hold of "options trading 101" by Bill Johnson: grassroots to clouds, everything is covered.
Cheers, Prakash Holla |
hey thanks holla!  By the way, during my articleship my stipend mon't be more than 6000 - 8000 a month, say after to months I accumulate around 15000 rupees, can I use that in minifty options or is 15000 too low? |
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