Exercise means the financial transaction specified by the contract is to be enacted immediately between the two parties, and the contract itself is terminated. And this has to be done on(European) or before(American) the Contract Expiry Date.

When exercising a call, the owner of the option purchases the underlying security at the strike price from the option seller, while for a put, the owner of the option sells the underlying security to the option seller.

Only the Owner of an option has the rights to exercise it.

my query is,does the owner of the option sell the option to option seller? or buyer?

just for information

I am trying to learn f&O

Can any one help me to teach me from base .

didn't get your question?

can you please reword it.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

Good effort to learn it! Let me try to explain between you and me!

Man4urheart(Option Seller) sells NIFTY Option to mahen_r26(option buyer)

Now,

mahen_r26(option buyer) can Buy Option ( Right to Sell NIFTY as well as Right to Buy NIFTY) @ 2744! from Man4urheart(Option Seller)

Take your pick what you want to do as of today with NIFTY at 2744?

I wanted to understand ,'when the owner of the option put (sell) the option who will buy it ?
option sell or buyer?

When exercising a call, the owner of the option purchases the underlying security at the strike price from the option seller, while for a put, the owner of the option sells the underlying security to the option seller.

what happened if mahen_r26 is seller then man4all heart will buyer or seller?
Only the Owner of an option has the rights to exercise it.

Re posting this picture



- You see the thief in picture, you want to be that one
- I am retail investor(man4urheart) buyer! But I can buy both right to Sell as well as Buy!

- When you act as a seller, you can sell both "Right to Sell or PUT Option Seller" as well as "Right to Buy or Call Option Seller"!


Option seller is misleading.

But correct words to use is "Call Option seller" or "Put Option seller"

This is the most basic and confusing concept in this derivative instrument!

Now the Call option buyer or Put Option buyer only has right to exercise it anytime depending upon option type European or American.

Call Option seller or Put Option Seller has no right to excercise!

initially there is an option buyer and an option seller.

suppose it is a 3000 Nifty Put.

Suppose A buys a 3000 Nifty put for Rs 150.

B sells the put to A.

Now A has the right to sell Nifty at 3000 to B.

put option = right to sell

If A sells the option to C, the "right to sell" will go to C.

Now C has the right to sell Nifty at 3000.

Does this make things clear or you still have doubts?

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

IF there is no person as C, then to whom will A sell?

I m confused?
Suppose I have bought a call option of nifty 3000(strike price) at Rs 10
Then who is selling this to me?...............
Is someone selling a call option of 3000 to me..........which he has taken from somebody...............
so who is the first person who has bought this call option and from whom?..............

Option selling is same as selling any stock.

You may or may not own the option.

When you don't own the option, you sell in hope that the option will expire worthless or that you will buy back the option at a lower price.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+