Doubt on square off

[desifxtrader]

I might be asking silly question again but want to learn about option..I have question again as...
Suppose I bought Nifty 27 May Nifty 5300 put @95 Rs.. when Nifty is trading at 5330.and after lets say 2 days nifty might be trading at 5275 and option price for it is now 125,so can I square off this put position and make profit as (125-95= 30)?I just confused by American style and European style written puts strategy,so plz guide me on this?

You're facing so many doubts because you've never executed a trade. Forget all the styles, do it desi style - execute an option trade PRACTICALLY with 1 lot and the picture would clear up.

 

[richo]

I might be asking silly question again but want to learn about option..I have question again as...
Suppose I bought Nifty 27 May Nifty 5300 put @95 Rs.. when Nifty is trading at 5330.and after lets say 2 days nifty might be trading at 5275 and option price for it is now 125,so can I square off this put position and make profit as (125-95= 30)?I just confused by American style and European style written puts strategy,so plz guide me on this?

Don't bother about Nifty and where it is trading. You can square off your position call/put anytime if you want, before expiry.

Richo

 

[welcomevijay]

Dear friends, i have a question,i have bought nifty call 5200 may@45 underlying price was 4950.my question is, i squre off my position when underlying is 5000 call [email protected] this profit because in my trading account (icicidirect) shows profit of 50*10=500