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#1
21st October 2007, 02:49 PM
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Options doubt in monthly closing
Dear senior member Doubt in option on monthly closing basic What happen when nifty future closed in this month (oct 2007) @5200. I sell l lot of nifty 5750 Ce@Rs.110 and buy 1 lot of nifty 5600 Pe @63 please help me in the monthly closing basic. Please note I not covered any postion In Pe and Ce what is my profit in pe and ce
Last edited by jayamsuccess : 21st October 2007 at 02:55 PM. 
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#2
21st October 2007, 09:07 PM
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Re: Options doubt in monthly closing
Hi Jayamsuccess;
U r indeed a success.congratulations on both ur positions being in profit. When u sell an option ; ur profit is the premium received.In ur case rs.110/.;that is provide NIFTY doesn't go above 5750.Even Nifty goes down much below, u will not get further benifit. On the other hand ;If Nifty goes above that then u are bound to pay the the buyer the difference between 5750 & the figure at which Nifty closes on the F & O expiry. So ; in ur CE sellposition ; u keep a stop loss to protect the erosion of premium, in case Nifty reverses. U can buy back the CE any time u want; & close the position before the expiry. But in that case ur profit will be 110-the rate at which u buy the CE. In case Nifty closes below 5750 , then ur full premium of 110/. is ur profit. No more , No less. Coming to ur PUT OPTION U R IN VERY GOOD PROFITS. Currently 5600 pe is @421.65/. & ur purchase price is 63/. Ur profit : 421.85-63. U have 2 choices ;either u can bk. the profit by selling or u can let the profits run with a trailing stop loss to protect ur profits. Looking at the mkt. conditions, it would be prudent to let the profits run with a trailing stop. Cheers.
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#3
21st October 2007, 09:54 PM
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Re: Options doubt in monthly closing
Quote:
(63)+(5600-5200=400-63=337)=400X50= Profit 20000/- The above has an error , it should be : (110)+(5600-5200=400-63=337)=437X50=21850 I had by mistake taken the CE sell at 66/- Last edited by rkkarnani : 22nd October 2007 at 11:41 AM. Reason: Error
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#4
22nd October 2007, 10:39 AM
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Re: Options doubt in monthly closing
Thanks Members thanks a lot
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#5
22nd October 2007, 11:10 AM
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Re: Options doubt in monthly closing
I think you should get following gain on closing of 5200 nifty expiry as by selling CE and buying PE means that in both the calls you have sold the nifty :
Sell CE 5750 @ 110 = (5750-110)-5200= 440 = 440 x 50 = 22,000 Buy PC 5600 @ 63 = (5600-63)-5200 = 337 = 337 x 50 = 16,850 CONGRATS.
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#6
22nd October 2007, 11:38 AM
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Re: Options doubt in monthly closing
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#8
22nd October 2007, 11:44 AM
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Re: Options doubt in monthly closing
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#9
22nd October 2007, 11:46 AM
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