Seniors,
Would like to know the following:
Suppose I buy NIFTY 50 PUT at a Strike Price of Rs.5500 at a premium of 16.50. Expiry is 30th September, 2010. The spot price is Rs.5717.85. I assume my breakeven will be Rs.5500 - 16.50 = Rs.5483.50. So for me to breakeven, the spot should be 5483.50.
If on 20th September, 2010, the Spot is Rs.5300, then the profit I would be making is Rs.5483.50 - Rs.5300 = 183.50 x 50 = Rs.9,175 Profit,
Please advise whether I am correct in my calculation.
Would like to know the following:
Suppose I buy NIFTY 50 PUT at a Strike Price of Rs.5500 at a premium of 16.50. Expiry is 30th September, 2010. The spot price is Rs.5717.85. I assume my breakeven will be Rs.5500 - 16.50 = Rs.5483.50. So for me to breakeven, the spot should be 5483.50.
If on 20th September, 2010, the Spot is Rs.5300, then the profit I would be making is Rs.5483.50 - Rs.5300 = 183.50 x 50 = Rs.9,175 Profit,
Please advise whether I am correct in my calculation.