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Old 17th April 2009, 11:49 PM
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Default Rollover Puts - Help Required



Hi,

I am currently holding 3 puts of 2800,2900 and 3000 at very high prices.

I am expecting the NIFTY to correct to 2900 levels at least, but that seems very difficult to achieve by April 29th, if not impossible.

Can you suggest shall I rollover the 3 puts to the May series, or shall I book my losses?

Can somebody throw some more light regarding rollover of puts and calls?
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Old 18th April 2009, 09:59 AM
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Default

You can't rollover options.

Once an option expires, it has no value.

You have to buy a new option.

Unlike futures where different series trade at almost the same price, options of the same price in different series trade at different prices.

Further the expiry, more expensive the option.

Nifty 3000 put for April 2009 is trading at Rs 11.3.

Nifty 3000 put for May 2009 is trading at Rs 180.

If you sell the April put and buy the May put, it would cost you an additional Rs 180 per unit.
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