Also there is a error in bearish strategy, instead of market wont fall, it should be market wont rise. will there be any extra charges.? For holding a future position, you would need NSE stipulated margins which would work upwards of Rs 25000 based on what future contract you are trading whereas in options a trader with even Rs 100 in his account could take some kind of an option position. Sreejith. does Pi or Kite has this option strategy tool? But, the profits from your options(notional) can’t get adjusted with the loss on your futures (MTM), and if there is not atleast the minimum stipulated SPAN margin in your account, the positions will be squared off. 1. For option trader we don’t have Spread order option (to open strategy). Will take some efforts from your side to integrate data. May I know by when we can view option chain and calculate delta of an option on Pi like on ZT? Not decay in stock price, but there is time decay in options premiums for sure. If others brokers don’t having same sort of limit, why with Zerodha. 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 : –. do you have any near plans to reintroduce it or can you suggest any tool like this? Check this post, explains about option writing. 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. pls clarify my doubt. It’s looks like 3 times high from the usual price. Cheers.. Hello. 1. If you are buying options, you rather use NRML as there is no additional margin you get by using MIS. Suggest you to go through this: http://zerodha.com/varsity/module/option-theory/. – day separator is good , needed it badly, I would like to know whether we can create strategies by mixing futures and options. The entire pledge/unpledge costs around Rs 55/scrip. Kindly clarify. As we all aware last day in Bank Nifty Expiry is very important and on some days volatility been much higher by the limits been set by you. Sensibull has all that is founder has described. in regular margin calculator it has not shown please guide. Continue with Google. Can you please update the users ( via mail or something ) that weekly options are not working in Pi / Kite , so that they don’t take wrong positions !!! If am selling an call option first, say for nifty jun 7600 CE, price is 430 * 75(1lot). So to sell 6000 calls of nifty first and then buy back you would need almost 30k for an overnight trade. 4)Consider a Put 300 was bought ,if at the time of expiry, market price of Reliance is Rs 320/ – , the buyer of the Put option will choose not to exercise his option to sell. Hi nitin it is very useful for me if you provide any free version software name like option oracle, my option oracle is not giving strike prices, worked fine somedays but now it is not giving any strike price, it is more helpfull or give me any other software name as suggestion as you know. Regards. It added as : NIFTY16SEP8800CE. 3. what is the use of the button PnL on last and best, both seem to be giving the same result. dear nithin sir, i am new my id RR3456. So my order gets executed and I have 60k in my wallet. Hi sir , for option writing in Bank nifty Weekly Options for overnight Position what is the margin required, i have checked in calulator it is showing around 41000 per lot is this the right margin for overnight Position in option writing ………..and in Upstox the intraday margin for writing options is around 15000 Per Lot but in zerodha there is 27000 Per Lot for mis Order in bank nifty weekly options . I am New to the F & O trading. I’d suggest you to read this once, I’d suggest you to read the equity derivative modules on this link. It will not have any value. You can’t compute weekly option margin using the margin calculator. So if market is bullish i shall buy call and if market is bearish i shall sell puts? Sir, how do I trade Iron Condors on Zerodha Trader. Thx. Can you email the same to me at [email protected]. This tool is currently not there anymore. Are you planing to add option chain with calculation of Greeks in holding position like Sharekhan ? Very well explained. Angel Broking Flat ₹20 per trade. Ah.. looks like you are very new. We have updated here: https://zerodha.com/marketintel/Bulletin/. Find following brief on how to use it: 1. Because Margin Calculator shows Rs.5554. Best to send account specific query to [email protected]. Instead if i can get the option chain with 1 click on underlying scrip than it will be easy to trade. Thanks for your response. So to have profit shall i buy call or put option? Sorry , a correction in the last one ” the remaining loss of (350-330) *100 = 2000 rest with”. what about other softwares? How to check the profit potential? Yes you can trade naked options i.e buy calls/short puts if you are bullish and buy puts/short calls if you are bearish, but options as a product especially combination of nifty options offer you an opportunity to setup trades with immenese profit potential. If all the legs have to be traded individually, Sir can the iron condor be traded on Zerodha Pi also. after step 8 how to save ” My Strategy”, so that we can access it later directly. 3. Thanks Once again thanks for finding time to reply. i am new to this field , the link which you have provided doesnt have any pdf ,which can explain options and its characteristics. You mentioned we can take weekly option positions in Pi. Zerodha has advance and stable trading platforms and tools in comparison to other brokers including upstox. Zerodha 5Paisa Alice Blue Motilal Oswal ICICI Direct IIFL Angel Broking. All rights reserved. Suppose I have bought 8400CE @20 on October 29 contract. 6. is there any chance it might come back. Can you please let me know this part, Can you please let me know this part. Following are the reasons which probably attributed to the increase in popularity of options on the NSE: 1. But there are some other tools too. In equities, this can be done only on an intraday basis. So they can be exercised only on expiry day. The pricing of an option depends on a lot of factors. 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. I too cant emphasize enough the need for Options Chain in Kite and Pi… The calls and puts should be directly tradeable from the Options chain. 1. Dear Zerodha team, You can place at once using basket order, but since they are different scrips they will be considered different orders. and how to do it , do I PUT a new contract or excersicing means I bought it and sold it as well.I’m confused? I am a regular user. It is not within Pi. Why bank nifty weekly symbols are not seen in the symbol selection in F&O margin calculator in case i need to know the margins for sell. You can similarly select other weekly options. Can you please provide some link of option payoff diagram generator to test my own strategies. very nice..its useful to like me “option trader” but the major problem is ur not give intraday exposure for option writing.. Does it becomes completely zero. How can I sell the lot I bought back at 134? Zerodha customers have to apply through net-banking. Abrar, Feedback taken, let me bounce it off my tech team and see how much time they will take to sort this. One question don’t we have a lock script option on the strategy graph? However , when I tried taking position ( after reading your answer ) , it automatically enters the monthly option position – even after specifying weekly expiry. I had stopped trading for a while after making some silly common errors which u mentioned in your modules that normally new traders make. As always, you will want to check with your brokerage firm to ensure you understand their policies. Isnt option trading on listed Equities American style? This would save lot of headache and would make us more efficient. Hi Nitin, Has the option strategy tool been removed in Z trader, I still have it on mine. Check that link again. Should I sell first and then buy the remaining legs. On the trading platform, your profits for today will show based on the closing price of the options for yesterday and not based on your buying price and this is the reason you are seeing a loss and not profits on the platform today. If I click the order book, it shows nothing, I don’t understand and What should I do If I want to buy and sell it some other day. Hello, Thank You. 40. When were you facing this? can you please suggest me. Since the risk is unlimited, a margin is blocked in your trading account similar to futures. What is the volume impact on Price of say a 100-lot (5000 contract) trade of Nifty 8000CE if i want to buy at the open and fill the order immediately. Currently no payoff chart available on the 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. Nifty trading at 5310 then took Iron Condor as follows: Also, are there any charges for pledgeing in and out shares…there are few who charges and few dont..just want to be clear.. You can send an email to [email protected] with an account opening query with your contact details. I am not trading yet just watching the movement and trading virtually on paper. Thanks in advance. This has been on your list since Last year. There are options with various strike prices. The pop up window shows Zero, but to calculate the IV you can first add the contract on the marketwatch and click Shift + o, this opens up an option calculator window where you can calculate the IV. is there any other places in zerodha where we can analyse before taking an option strategy. 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. Kindly go through the following scenario: Dont mistake me to ask this , Why you made it free when it delivers average 10% & abv p.m that too with 80% profit days . Why Zerodha doesn’t include option chain IV and simple option strategy for placing order. Volatility is back in the market, and as an option seller, you couldn’t ask anything better than this from the market environment. They are either overlapped, some part is hidden, not displayed correctly ? 4. 3. What this means is if you buy and sell 1 lot of nifty futures at 6000, the turnover generated is Rs 6lks( 3lks+3lks). is long call and short put same? i am new to options trading. I have just the required amount to put a butterfly spread or an iron butterfly in place for a particular stock (around 20-25k). 1. Do I need to open a sell order for that or can I simply square-off the position like in equity? Usefull app for traders. Ah my bad, yeah 2.65*375. No there is no daily settlement on buy option positions, so if you bought on 29th May Rs 5000 will get debited (@100) from your account and when you sell at 80, Rs 4000 is credited to your account. If you don’t know how please refer this link. Developing Pivot (for Next Day Pivot levels). Today is 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 : –, rms:rule: option strike price based on ltp percentage for entity, I called customer care, I have been told that you had set the limit on Bank Nifty weekly option. Also suggest you to look at Varsity, we will be starting a module on Options shortly. Positions like the above will have margin benefits as they are partially hedged.*. hi sir, Also let me know whether we get statistics like POP (Probability of Profit), Volatility ranking and Max profit/Loss for these option strategies? If I want to write 5800CE with 40 premium, minimum how much margin I need in my account? While trading in Options, in the expiry date of F& O, we had to close the positions of the particular month. Open a new sell order button and mention your price or sell it at market. 1. Sir, As I am a new trader , I am eager to know and plan according to it. just awesome. Our education initiative, has become quite popular. The pay off graph is not showing the pay off in between the strike price, say nifty at 5923, corresponding pay off is not showing, which is also vital, Regarding your point 2 (add to my strategy), what I meant was to put my own strike price and check the outcome, for example 5800 and 6000 strike of nifty, whereas in your strategy only the nearest strikes are bundled together, like 5900 & 6000 strike price of nifty. Can you please help me about this message while i am trading for NFO optios buy or sell. STT is 0.017% of Rs 3lks which is Rs 51, whereas if you had bought and sold an option with premium Rs 100, the turnover would have been Rs 10,000(5000+5000) and STT of Rs 0.85. We have to wait lot of time and lag in putting order from Sensibull and that too at heavy price. Its with all the brokers or only with Zerodha We will be providing more than option chain related to options in coming months, but these will take more time. As we all aware last day in Bank Nifty Expiry is very important and on some days volatility been much higher by the limits been set by you. For example, that day premium ends at 120 and I am not buying it to exit. 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… i am not able to take intrday margins in weekly options why has it been blocked even when it has become very liquid. Is it 200×50 which equals to 10000? 8. Also there should be columns for Option Greeks like Delta, Theta, Gamma which are updated in real time with the Option prices. I need to add the option with strike price every time than only i am able to see the rate. For example I have 1 lakh rupees in my wallet. One more thing. Zerodha (₹20/Trade) Open Account. As an example, if my view is that nifty will stay in the range of 5800 and 6200 for this expiry(NOV 2013). 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. Yes Sreejith it will be, you cannot hold opposite positions of same contract on a single trading account.. (of Rs.50 per unit) * 100 = 5000rs. Don’t have a broker account? How can i login to Zerodha trader (Nest Platform). or can you suggest any other which can be integrated with your system for Indian market.. hi sorry i mean to say options strategy tool.. please rectify the same while answering. Yep you are right. The strategy is well designed to handle monthly 700 points of FALL in NIFTY with 5 years of back testing and with use of high-end software MATLAB we have designed full proof innovative Nifty Options Writing Strategy Salient Features Avg. So I opted for Zerodha open trade, and I figured out how the futures market works. 2. , we would be out of business if we charged brokerage on options the way you have said. On our list to do. But do check this post, explains how STT charged is so much more for in the money expired options, it is best to square off all options that have any value to it in the market on expiry day. Pls clarify.. Sensibull is pricy for Option Strategy Builder and putting order. I went to Admin positions and selected the position, but I don’t see any option as Square-off there. Sell Nifty 8000 call 1 lot Spot Price: # Option Type Position Strike Price No. Interesting tool very helpful for people like me who trade on options. The owner of sensibull had written a long answer and sensibull is good, too. Not for now, it is not available on Zerodha trader now as well. +/- 250 points from the current current Index position. At 3.20pm, when MIS is getting squared off automatically, there can be an impact of upto 1 point again. Zerodha's customer base is 4 times larger than Upstox. i also don’t have an idea. SEBI Registered Research Analyst INH200006895 Also getting Option Oracle seems like horse’s horn. I want to sell one lot 9400 put and one lot 10800 call. Sorry, it was Rs 3750 = 50 (difference in the two contracts) X 3 (no of contracts) X 25 (lot size). You require only 40% of the overnight required margins and you can use that till 3.20pm. if i buy 1 lot of asian paint 860 CE @10 on 09.03.2015 and sold it @ 20 on 25.03.2015. my profit would be 10*500=5000. If there are no bidders, even if we put 0 or.05 the option is not getting traded. Is your operation strategies tool operative now?? If it is expiring worthless, there is no STT to be paid. For eg. 250. Kindly advise me when options strategy can be created and traded in the current month. Until we offer it on Kite (a few days away), you will have to sell it through Pi itself. For options, the contract value is Strike+Premium * lotsize. Hi Zerodha, Take a free tour. Is there a way we can exercise the options in Zerodha Trader ? Einkaufen bei eBay ist sicher – dank Käuferschutz. i.e. Thanks. I am guessing the margin required for NRML would be around Rs 3750 (Rs 50*3*25) for this hedge. ok Nitin. This has cost me some money as well !!! 1. so i should have a fund for 75*430=32250 rs. If yes, then that would be very very nice. Now, when such things happens, who is responsible for all the loss occurring to customers? Delta Gamma, Theta etc. 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.. Option Strategy. En un trabajo conjunto entre la Novena Brigada del Ejército y la Policía Huila, denominado plan ‘Ípsilon’, se logró la incautación de 340 kilos de estupefacientes y 290 millones de pesos en efectivo, en las carreteras del departamento. This results in better services. Banknifty weekly option when will be added to kite? NFO – NORMAL – OPTIDX – NIFTY – 29SEP2016 – CE – 8800 – NIFTY16SEP8800CE Dilip. Its for the last day only or for the whole week Zerodha 5Paisa Alice Blue Motilal Oswal ICICI Direct IIFL Angel Broking. Very good for beginners. https://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuoteFO.jsp?underlying=NIFTY&instrument=FUTIDX&type=-&strike=-&expiry=28JUL2016. Only certain strikes are liquid. 1. Latest News: Get all the latest India news, ipo, bse, business news, commodity, sensex nifty, politics news with ease and comfort any time anywhere only on Moneycontrol. I thought only the Indices were european. You can post these questions on Varsity. Bank Nifty weekly options are already available. But if I only sell options for the same my margin requirement will be quite high around 70-80k. Advise you to go through Varsity. I am actually having a big doubt among the 4 thing-: Long Call Option Is some resolution on which Pi display correctly ? then i can buy the same before EoD for 400 per lot. please let me know why the strategy builder is no longer available. You can use SPAN calculator for checking the margin requirements. 3. hi nithin Let me explain, if you buy Nifty 8500 puts at Rs 100 on say Aug 1st, you can sell it immediately, next day or any day till the expiry day of the contract. pls help, know nothing (what is decay in option trading). All options on India are now European. You can Short puts, when market goes up, put values will come down and hence if you are short puts you can profit. 3. Let us suppose it needs 40k as margin. First step is for you to add all the nifty option strikes in this range on your market watch, so add 5800 – 6200 Calls and puts with November expiry. Trading in Futures and Options was introduced in the early 2000’s on the NSE. […]. 3. You can hold an options short position until expiry. For Futures, you can sell and hold until expiry by paying the margin amount for holding that short position. Aliceblue Get 0% Commission. SEBI Registered Research Analyst INH200006895 Actually i have been holding a nifty 7300 CE at premium of 56. See the pic below to launch Option Strategy: 4. If it closes above, it gets expired worthless. If the price becomes zero at expiration then i will sell tomorrow only. “The trend is your friend but the fade is the ultimate wealth builder.” – Tom Sosnoff. The weekly option contracts do not have enough liquidity to afford very high leverage. For few months now, we are facing several issues and especially on Monday’s, it is a mess. Hello, 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. ... please let me know why the strategy builder is no longer available. Its with all the brokers or only with Zerodha You definitely won’t be disturbing us , But what you said makes sense, we will try to figure something out on this.. 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. Yes, you can but the option and sell the next second itself or anytime before the expiry date of that contract. Option Strategy is a tool which we have introduced on Zerodha Trader which suggests you and helps build option strategies. Buy 3 contracts of Bank Nifty March 12300 put for 340 Rs 20 per executed order or 0.01% of the contract value whichever is lower. But when you write options i.e Sell first and then buy back, you have chances to make unlimited loss and hence exchange blocks margin similar to how they block in futures. I informed them several times that I am working in IT for last 25 years and dont give me such stuff. is long put and short call same? 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.. What are your future plans for Option traders. However margins will be around the same as required for the closest expiry monthly contract. is there any decay in stock price when i hold up to expiry date in option trading ? Thank you very much for the prompt reply. 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. By proceeding, you agree toterms and conditions. Please help me to understand that why Bank Nifty weekly option price of February series is very high. STT is 0.017% of Rs 3lks which is Rs 51, whereas if you had bought and sold an option with premium Rs 100, the turnover would have been Rs 10,000(5000+5000) and STT of Rs 0.85. Option Writing: This is totally different from short selling because you’re earning a premium from the buyer of the option which gives him the ‘right’ to buy or sell an asset at a given price on a later date if the strike price is achieved. when I checked the span margin it was rs.37048. but 30*40=1200, BEst to send account specific queries to [email protected], hi sir, if i already take a position say reliance may call of 1440 and nw i want to take a position to sell reliance 1500 call of april can i get margin benefits and how much capital is required for shorting 1500 call pls help me out.thankyou. please reply? Thanks to strategy creator. Long Put Option And one more thing lets say Nifty 7500CE is trading at 200 then what margin i require to have a long position? 4. hmmm.. ur question doesn’t really make much sense. Trade with real or Virtual money. We should have it up in the next two days. Also, is the margin requirement same as the monthly contract (Options). Phew, you are starting at the very basic. Lakshman, best to send your account specific question to [email protected] with your client ID. Check out Sensibull. Is there any way to get some training?? Now convert all of them to NRML, this way u will be able to get into the strategy with lesser margins. 2) why the various details are not displaying correctly in Pi. It is available on Pi, the desktop platform. If both are the same, the result will show the same. SPAN is available only on Zerodha Trader, if you are still using NOW trading platform send a request to migrate immediately.. You can check out Sensibull for building option strategies now. I am guessing these are all out of the money options. As per my assumption, I will have 1,00,000 – 40,000 – (75×20) + (75×40) + 40,000 = 1,01,500. i find it very handy in calculating the payoffs. Didn’t get your question. Thanks for the clarification of question 1. I just cant understand how my buying Average price shoot upto 82.55 although i bought only 1 lot of Nifty at 75 and squared it off at 82, If m wrong somewhere then sorry but please make me understand the above. And i know call is like long and put is like short position. 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. As I said, we are developing something, might take some time. Actually I was looking for Option Strategy Payoff chart. chandramohan, It works exactly like the monthly option, all options in India are European. Hi Sell 3 contracts of Bank Nifty March 12200 put for 290 because I could not run your application on my office desktop. how to do option trading in zerodha kite. http://www.nseindia.com/NP/nse_paathshaala.htm, Dear All You Can Register on the Above Link of NSE and a Great Way to Learn Options . Please explain with example. Really Nice Article. Assuming the option is in-the-money, there is no need to post margin for offsetting transactions. Most of the time we see that during the last few minutes the market varies allot. Appreciate your reply, I can understand why it’s not a matter of concern at least as of now. Taxes will be very low since taxes will applied on the premium. 2—What will be the difference between if in Product Code I select MIS and NRML in terms of validity ? Nitin , Thanks in advance and great work with Pi. You’ve to see the price of 8400 PE which is trading in this range. If we don’t square off, the exchange would also charge a short margin penalty. If others brokers don’t having same sort of limit, why with Zerodha, Dear Sir, How can i trade calendar strategy in PI. During using Pi (latest version) I selected a contract as : Should I buy the options first and then sell for applying the strategy. Quite a neat platform by the team. How can i apply option trading Will you be updating these pages based on Kite or anyother platform now. Please let me know is there any way in Zerodha kite / PI platform to view the option chain and define Option strategy. I cannot see the implied volatility figures for options. When you short options, the risk is unlimited and profit is limited to the premium you receive when you short the option. We are working on it, will take us a couple of months. 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. how long can i hold and buy? There are certain products on Plus which are paid, you can see more here: https://plus.omnesysindia.com/NestPlus/Home/.