| View previous topic :: View next topic |
| Author |
selling options |
vtnarendra
White Belt
Joined: 05 Oct 2009
Posts: 57
|
Post: #1  Posted: Wed Apr 25, 2012 10:06 am Post subject: selling options |
 |
|
| i have a query on options. for example i sell infy 2300 april put options at Rs 15.30. suppose at expiry the price is Rs 2.30. if i buy back at Rs 2.30 then there is a profit of Rs 13. suppose inadvertently i have neglected to buy back, then what happens to my trade at expiry. thanks in advance |
|
| Back to top |
|
 |
|
| |
vishyvaranasi
Green Belt
Joined: 11 Jul 2011
Posts: 1159
|
| Post: #2 Posted: Wed Apr 25, 2012 10:19 am Post subject: Re: selling options |
|
|
| vtnarendra wrote: | | i have a query on options. for example i sell infy 2300 april put options at Rs 15.30. suppose at expiry the price is Rs 2.30. if i buy back at Rs 2.30 then there is a profit of Rs 13. suppose inadvertently i have neglected to buy back, then what happens to my trade at expiry. thanks in advance |
Hi Narendra,
If u forget to buy back then the exchange will automatically close the position but there will be a penalty mlevied on such positions. I dont exactly know the amount of penalty.
Vishy |
|
| Back to top |
|
|
vtnarendra
White Belt
Joined: 05 Oct 2009
Posts: 57
|
| Post: #3 Posted: Wed Apr 25, 2012 11:25 am Post subject: selling options |
|
|
| thanks vishy. but if the exchange does the trade, would i get to keep the difference in premium. |
|
| Back to top |
|
|
vinay28
Black Belt
Joined: 24 Dec 2010
Posts: 11748
|
| Post: #4 Posted: Wed Apr 25, 2012 11:39 am Post subject: |
|
|
| it's not penalty but much higher STT. |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You can attach files in this forum
You can download files in this forum
|
Powered by phpBB © 2001, 2005 phpBB Group
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
