In India, like I said, everything is cash settled. 2. See the pic below to launch Option Strategy: 4. Am I right or wrong in calculation. how to do option trading in zerodha kite. Thanks. Index Bullish Collar; Index Bearish Collar; Guts 2. For taking 3 such positions, you will need 45k in your account.. This has been on your list since Last year. I am New to the F & O trading. See the Pic below: Once you have decided to take an option trade, if it involves writing options(selling options), use the Zerodha SPAN calculator to know the exact margins required. is long call and short put same? 2. Hi Guys, Choose from a variety of Bullish / Bearish / Neutral trend strategies from the drop-down. Hey nithin ,have a few qus, I’m eagerly awaiting viewing Option chain in PI. I was checking the brokerage calculator and had a question on the brokerage charged for options. Thanks in advance and great work with Pi. It’s looks like 3 times high from the usual price. Am i correct? Buy average price has no relation to settlement price, can you be more specific. If I want to write 5800CE with 40 premium, minimum how much margin I need in my account? In this case, the trader can still make a profit, without much volatility in the market, by employing the long call butterfly. Zerodha – Open Paperless Account. Sir I want to know about this… Hi But if I only sell options for the same my margin requirement will be quite high around 70-80k. Hi Venu, checked the link you provided and tried to search “banknifty june 18500” in Kite just as shown in the screenshot at http://tradingqna.com/39158/how-to-add-weekly-banknity-options-in-kite-marketwatch, I am not getting the weekly option but I am getting the chain of options for the month (30th june expiry).Please check before responding.Most Harassive.I am sure this will be the case with MCX commodity options as well once they are launched.Finance minister announced in the budget in February that MCX commodity options will be launched and I am sure you guys are not ready as usual. Index Hedging Tools 36. Hello Nitin Tried everything to see them In zerodha trader but unable to bring them on. Bank Nifty weekly options are already available. Whether option strategy can be created on the day before expiry or even on the day of expiry. Hedging Tools 44. Really Nice Article. Butterfly: Buy 1 in-the-money (ITM) Call, Sell 2 out-of-the-money (OTM) Calls, Buy 1 deep out of the money Call (long butterfly spread with calls, there are many variations to the butterfly) Confused with your question Praveen. And I want to hold this till expiry. Buy Calls, if the market goes up, premium will ideally go up and you can profit. Suppose I have bought 8400CE @20 on October 29 contract. Long calls and short puts, ideally will make you profit when market goes up, but they are completely different in terms of how you make money and similarly with long puts and short calls. Check out Sensibull. Also getting Option Oracle seems like horse’s horn. What this means is if you buy and sell 1 lot of nifty futures at 6000, the turnover generated is Rs 6lks( 3lks+3lks). Similarly if you feel market is going down. The Bear Call Spread .. 9.1 – Background We discussed the “Call Ratio Back spread” strategy extensively in chapter 4 of this module. please check all of the errors and whole strategy thoroughly once, strange that no one has pointed out these things even after yr strategy has been online for such a long time.. Hi… A butterfly spread is an options strategy combining bull and bear spreads, with a fixed risk and capped profit. You can try options oracle from Samoa sky, it is probably the most widely used. Short Put option. 1. The 31st May contract is the same as the monthly option, so there wouldn’t be Banknifty 31st May strike-price, it’d be Banknifty May strike-price. Then the existing 5500 CE Long position will be offset? You can see exact margins for option writing/multiple positions on our SPAN calculator by simulating the trade. Thanks for your response. Just want to confirm, If I trade a hedge strategy where my maximum loss is predefined, and I want to be in strategy till month end. if u r given more than present condition(i don’t know .how much u r given present) we will happy to trade in option.. Madhan, we give margins for option writing(intraday), pretty high actually. For example Nifty 7500CE was trading at around 200 in morning. Its for the last day only or for the whole week 6. more. Hi, NSE has launched weekly Bank Nifty options. 1. I have around 3300 rs in my account and trying to buy bank nifty 1 rs PE ,lot size is 40 but it is giving the above message. If you can write to [email protected] in detail mentioning the same we will answer accordingly or if it is required will call take access of your system and fix it. I have just the required amount to put a butterfly spread or an iron butterfly in place for a particular stock (around 20-25k). Theta: It measures how much time erosion will affect the net premium of … Please help me in understanding the technicalities and fundamentals of this. The strategy is a combination of bull Spread and bear Spread. SO, in order to take benefit of the strategy for reducing the margin what should I do first. The way you have calculated margin requirements is wrong, that is why we have introduced http://www.zerodha.com/z-connect/blog/view/span-calculator, SPAN calculator where you can mention your trade and it will automatically let you know the NSE stipulated margin requirements.. The entire pledge/unpledge costs around Rs 55/scrip. My View is that market will remain neutral(that means neither bearish nor bullish) and I also feel that market will be in a very narrow range. I have doubt regarding Options Trading on Zerodha Web Platform I have begged to your team several times that when there is an issue, please communicate to the customers so that they can look for alternatives. Interesting tool very helpful for people like me who trade on options. But there are days when market could go up but calls premium could loose you money when the implied volatility drops, for example today, even though market is up call premiums are down. Ideally, you want the calls with strikes B and C to expire worthless while capturing the intrinsic value of the in-the-money call with strike A. it will save time as well. It can create confusion especially in BANKNIFTY which has weakly and monthly expiry while NIFTY has only monthly expiry. We’re working on making them available. You’ll always receive credit of (Premium*Qty) to your account. Design Own Options Strategy; Weekday Wise Strategies 1. When I say multi leg strategies, it implies the strategy requires 2 or more option transactions. Option value = intrinsic + Time value. Hello sir please make me understand Buy price and buy average price and how is buy average price related to settlement price and why it changes on daily basis of options? Dear Zerodha team, http://www.zerodha.com/z-connect/blog/view/zerodha-margin-policies. when I checked the span margin it was rs.37048. 3. but please make sure how i can start this setup. A trader should define his own … I want to write a NIFTY 8600 call(1 lot, qty: 75) at 100/- premium with NRML. Thanks Nitin, If you give time say next day I can add margin, also would like to know more about opening an account..is there a contact person. Now, when such things happens, who is responsible for all the loss occurring to customers? i find it very handy in calculating the payoffs. Please help us on this. ok Nitin. do you have any near plans to reintroduce it or can you suggest any tool like this? 1) why it is added as NIFTY16SEP8800CE , not as NIFTY29SEP8800CE when the expiry is on 29-Sep-2016 ? dear nithin sir, i am new my id RR3456. Any solutions ? Very well explained. please let me know why the strategy builder is no longer available. 1)There are two types of options available in the Indian market — European and American. So shall i sell it or wait till expiration date. We should have it up in the next two days. Can you please let me know how to initiate Option Strategies in Zerodha?. This is not in the Indian context. 2. Last is basically the last traded price and best is basically the best available price. Indexes 2. Let us suppose it needs 40k as margin. Antriksh, you can send an email to [email protected], we can get someone to call you back on this. The window will look like below when you click on the restore button and the prices should start refreshing as the data is fetched from your market watch. Could you enlighten me? This suggests me 5 different strategies as shown in the pic below. Options Theory for Professional Trading, 8. Index options, such as the nifty and sensex, are European-style. There is a limited amount of risk involved and you can expect limited profit only in this options strategy. If a 300 put was bought, and the stock price closes anything above 300, the entire premium the put option buyer had paid will become worthless. 2. On the web based platform, if you go to positions/admin positions, you will be able to see your 8700 calls there, you can either square off from there or else place a selling order directly from the marketwatch. ... A Digital Blogger | Short Call Butterfly is the options strategy which is used when the trader expects a lot of volatility in the market. If am selling an call option first, say for nifty jun 7600 CE, price is 430 * 75(1lot). If you are trading on banknifty weekly options, we run restrictions on the strikes you can trade on the last day. The strategy is a combination of bull Spread and bear Spread. Today, since morning, none of your systems , Pi, Kite, trade and nest, none of them are working and after several communication with your team, they have accepted that kite is not working. If there are no bidders, even if we put 0 or.05 the option is not getting traded. Is there a way we can exercise the options in Zerodha Trader ? hmm.. this is no more there. For example I have 1 lakh rupees in my wallet. 1. Please let me know is there any way in Zerodha kite / PI platform to view the option chain and define Option strategy. http://zerodha.com/varsity/. Buy to Open 5500 CE 5100 PE i was looking for this .. count me in,.., my number 9000083000, i am already client will transfer funds today. You can use SPAN calculator for checking the margin requirements. Predefined rule check will make sure you dont make mistake in choosing wrong strike prices. A holder combines four option contracts having the same expiry date at three strike price points, which can create a perfect range of prices and make some profit for the holder. Buy Nifty future 1 lot However margins will be around the same as required for the closest expiry monthly contract. is there any other places in zerodha where we can analyse before taking an option strategy. It works on Pi, if you are not able to see this, can you update the latest patch of Pi. Future positions have unlimited risk, whereas in option buying the risk is limited to the premium you are paying. i want to short bank nifty Dec 8th CE option, but in margin calculator the symbol is not available to calculate the margin required to short, only monthly contracts available. Buy and sell together come up to 6 lakhs. I have never traded a option but i want to do some trade in it. You can check out Sensibull for building option strategies now. Arm, the above would be beneficial to people who have an understanding on options.. We presently don’t have content on basics of options, but we intend to start something on zconnect, so keep following.. Cheers.. Hello. Okay, so exercising options in India has no meaning as all contracts are cash settled. But, I did not sell it until now, I received your margin statement stating that I have only Rs. as im not comfortable with Kite. If you are looking at the SPAN calculator for this by entering product type as NRML, this will be for overnight position and to hold till expiry. . sir i bought 1 lot of Nifty 7300 CE at 75 yesterday and sold it today at 82 but in my admin position it was showing Buy average price as 82.55 and there by it is showing a loss of 27.5, I mailed to Customer care and they told me that daily settlement prices changes everyday, Actually i m new to option trading and i thought i will make a profit of (82-75)x50= 350 but i made a loss of 27.5 instead of selling at 7 Rs higher. Hi (No Reply to my earlier query, so sending it again), Today it was Bank Nifty Weekly expiry, I had tried to take some position but every time my orders, Market Order, Limit Order or SL – Order all were rejected every time there was a message : –. My manual calculation i.e. Till then you’d have to use NSE option chain. 1. Is there any way to get some training?? You will have to take all the legs individually. If all the legs have to be traded individually, Sir can the iron condor be traded on Zerodha Pi also. Phew, you are starting at the very basic. Most of brokerage house around take FD as a collateral , I don’t understand why zerodha does not take FD, when nse has allowed FD’s as collateral..? At 3.20pm, when MIS is getting squared off automatically, there can be an impact of upto 1 point again. The F&O margin calculator does not have Banknifty option (weekly) expiry. Regarding question 2, I have sent email with screenshot to support yesterday around 11:00 AM but till now no response even support ticket is not generated. In case of zerodha has this features guide me how to use the same or is it in your pipe line for development or future release. Hedging Tools 44. Is it possible with Zerodha kite or PI. The strategy is a combination of bull Spread and bear Spread. So to have profit shall i buy call or put option? The option strategy involves a combination of various bull spreads and bear spreads. Hi Option Strategies book. If it closes at 8500 your option will be worth 100, at 8300 it will be worth 0. sir i want to ask one small question is there daily settlement price in option too? Short selling and option writing are definitely very different from each other. My questions are :-, 1. 2. This margin goes down for a strategy mentioned in the above pic because the various option postions are counteracting each other. Someone will get back to you asap. If no, just for an idea , when can we expect to trade these? Could you tell me where is it located in that page? please elaborate. http://zerodha.com/varsity/module/option-strategies/ is definitely a good place to get started. These features are provided by other brokers trading plat form. Bear Call Ladder 5. Thanks. Instead if i can get the option chain with 1 click on underlying scrip than it will be easy to trade. hi nithin There’s a detailed module on option strategies on Zerodha Varsity here: http://zerodha.com/varsity/module/option-strategies/ which you may want to go through. As explained If you want to buy 7500 CE when trading at 200, you need to have 200×50, but if you want to short 7500CE there is a margin required, which you can calculate using our SPAN calculator. i am new to options trading. very nice..its useful to like me “option trader” but the major problem is ur not give intraday exposure for option writing.. The Strategy. Does it becomes completely zero. Please help me out with these basic things I hope I will learn it with time on this platform. If yes, then that would be very very nice. No Moses, you can open only one payoff graph at a time presently.