Chapter 8 option strategies and payoffs

July 30, at 3: Yes you are right, it becomes the counterparties obligation. Intrinsic Value is always a positive value binary options indicator 90 binary options best strategy can never go below 0. January 1, at 7: May 6, at 7:

What metrics would help — volumes, open interest, etc? December 12, at 5: Likewise the call option buyer has unlimited profit potential, mirroring this the call option seller has maximum loss potential We have placed the payoff of Call Option buy and Put Option sell next to each other.

February 1, at 8: January 18, at 6: Hi Karthik, I just wanted to say that this is awesome work. There are 3 broad classifications —. So what does it mean open interest?

To exercise, you need to hold the position to expiry. In the first section you were explaining why the intrinsic value cannot be negative. Well, you are still buying a call option.

The intrinsic value calculation remains the same irrespective of long or short position. Markets and Taxation 7 chapters 8. November 17, at 5:

I am explaining this, please let me know what loopholes are in it. April 19, at I think the premium goes down as spot goes down because of Delta effect.

Assume in this massive swing you managed to capture just 2 points while trading this particular option intraday. May 15, at 7: May 25, at Hi Karthik, the bid-ask spread for the Nifty is quite close; and when I square off an order at market price, there are no major surprises.

Here in the second case Sell whether we have to pay margin for it? November 16, at 2: As you can see there are many strike prices available right from to May 20, at 7: The volume of Nifty spot is cumulative volumes of all the 50 stocks.

August 27, at 5: September 5, at 5: January 27, at 3: