Frequently Asked Questions
Stock Options
How are options classified?
Options are broadly classified into ‘Call’ and ‘Put’.
Call: Is a contract that allows the option buyer (after paying an option premium) to have the right but not the obligation to buy the underlying asset (typically 100 shares) at the strike price within a specified time. The seller of the option (after receiving an option premium) is obligated to sell the underlying asset to the buyer at the exercise price if the buyer exercises his right.
Put: Is a contract that allows the option buyer (after paying an option premium) to have the right but not the obligation to sell the underlying asset (typically 100 shares) at the strike price within a specified time. The seller of the option (after receiving an option premium) is obligated to buy the underlying asset from the buyer at the exercise price if the buyer exercises his right.
Other faq that might help you
- How do I make sense of an option symbol?
- What are the moneyness of options?
- What are the Greeks in option trading?
- What are the risks involved in trading options?
- What happens after I’ve entered into an options position?
- Are there any forms required prior to trading Options?
- What are the eligible account types to trade Options?
- How long is the approval process for Option Activation?
- How do I read the Option Portfolio balance?
- Why are Exercise/Assignment activities not shown on the same day of the e-statements?
- What are some of the common reasons for order rejection?
- How do I transfer funds into my Options Account? (Video Guide)
- How do I transfer funds into my Options Account?
- How do I transfer stocks into my Options Account? (Video Guide)
- How do I transfer stocks into my Options Account?
- Why is there a need to transfer funds/stocks prior to trading options?
- Does POEMS support option strategies?
- What are the supported platforms?
- Is there US Pre-market Trading for options?
- What are the tradable counters available for options?
- What happens if the underlying share is delisted onto OTC?
- Glossary
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