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Author Topic: Is buying a put the same as selling a call ? Comment.  (Read 3883 times)

vinu_kri

  • Guest
Is buying a put the same as selling a call ? Comment.
« on: June 16, 2009, 04:38 AM »
Pls answer the question.

If u have any study material pls provide.


Rgds / Vinod
 

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Offline Mba_Choice

Re: Is buying a put the same as selling a call ? Comment.
« Reply #1 on: June 16, 2009, 04:59 AM »
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Pls answer the question.

If u have any study material pls provide.


Rgds / Vinod

Which type of study material u want, your Title is not clear  ???
 

vinu_kri

  • Guest
Re: Is buying a put the same as selling a call ? Comment.
« Reply #2 on: June 16, 2009, 05:17 AM »
You are not allowed to view links. Register or Login
You are not allowed to view links. Register or Login
Pls answer the question.

If u have any study material pls provide.


Rgds / Vinod

Which type of study material u want, your Title is not clear  ???


In Derivatives one of the topic.
 

frmcandi

  • Guest
UL Re: Is buying a put the same as selling a call ? Comment.
« Reply #3 on: June 18, 2009, 05:09 AM »
No, buying a put means you have hedged downside risk but selling a call means you are taking an upside risk.

 

bbboy

  • Guest
Re: Is buying a put the same as selling a call ? Comment.
« Reply #4 on: July 22, 2009, 07:43 AM »
I am Technical analyst , read below, i hope it will solve ur problem -----

1) Trading in Options ( CALL & PUT)  comes in derevative segment.
2) When a trader buy PUT Option it means he thinks that spot rate of that underlaying will fall in coming time or days etc..
3) buying CALL option  means one expecting the spot rate of that underlying will increase in coming time or days.
4) PUT rate increase when its spot rate fall and PUT rate fall when its spot rate increase.
5) CALL rate increase when its spot rate increase and CALL rate falls when its spot rate decrease.

Now come to your Question -- Is buying a put the same as selling a call ??
1) The motto behind the buy Put or sell Call is same
2) But selling a CALL or PUT required huge margin then buying a CALL or PUT --- thats why most traders prefer buying call and put -- b'coz one can earn same % of profit buy buying a PUT or CALL instead of selling a CALL or PUT. and buying a PUT or CALL needs no margin it required only the actual cost.
3) Technically we called selling a CALL or PUT = Writting CALL or PUT , b'coz u creating a new contract by selling it in the market and new contract created b'coz u sold. thats why we call it writting call or put.

hope this will solve ur problem
« Last Edit: August 03, 2009, 01:07 AM by bbboy »
 

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