Please help me with this options doubt..

arunjose_ka · #1 26th January 2008, 03:03 AM

Hi..

I'm a newbee to options.Can anyone please help me with the following
scenario .

As of today IFCI closing -61.70

Suppose i bought one IFCI put at premium 3 rs at strike price 60
and one call option at at prem 5 rs for strike price of 60 .

What will happen to my investment if

1) IFCI is at 80 after 1 week.

2) IFCI at 52 after 1 week.

Thank You...

Arun

shareparthi · #2 27th January 2008, 07:03 PM

1)IFCI is at 80 after 1 week

PA jan IFCI 60 bought @ 3 - worthless

CA jan IFCI 60 bought @ 5 - making a profit of
(80-65)* 7875= Rs.1,18,125/-

2)IFCI is at 52 after 1 week

CA jan IFCI 60 bought @ 5 - worthless

PA jan IFCI 60 bought @ 3 - making a profit of
(57-52)* 7875= Rs.39,375/-

regards
shareparthi
for Fno calls
shareparthi***************

yatishjain · #3 27th January 2008, 09:39 PM

Cool way of explaining

nehal · #4 22nd June 2008, 12:44 PM

Quote:

Originally Posted by shareparthi

1)IFCI is at 80 after 1 week

PA jan IFCI 60 bought @ 3 - worthless

CA jan IFCI 60 bought @ 5 - making a profit of
(80-65)* 7875= Rs.1,18,125/-

2)IFCI is at 52 after 1 week

CA jan IFCI 60 bought @ 5 - worthless

PA jan IFCI 60 bought @ 3 - making a profit of
(57-52)* 7875= Rs.39,375/-

regards
shareparthi
for Fno calls
shareparthi***************

thanx for explanation....

i m studying/observing options now-a-days..

oxusmorouz · #5 22nd June 2008, 08:52 PM

Quote:

Originally Posted by shareparthi

1)IFCI is at 80 after 1 week

PA jan IFCI 60 bought @ 3 - worthless

CA jan IFCI 60 bought @ 5 - making a profit of
(80-65)* 7875= Rs.1,18,125/-

2)IFCI is at 52 after 1 week

CA jan IFCI 60 bought @ 5 - worthless

PA jan IFCI 60 bought @ 3 - making a profit of
(57-52)* 7875= Rs.39,375/-

regards
shareparthi
for Fno calls
shareparthi***************

Not another marketing scam. Guys, come back with some new gimmicks. These things are explored in depth already

mahesh2007 · #6 23rd June 2008, 02:11 PM

Quote:

Originally Posted by shareparthi

1)IFCI is at 80 after 1 week

PA jan IFCI 60 bought @ 3 - worthless

CA jan IFCI 60 bought @ 5 - making a profit of
(80-65)* 7875= Rs.1,18,125/-

2)IFCI is at 52 after 1 week

CA jan IFCI 60 bought @ 5 - worthless

PA jan IFCI 60 bought @ 3 - making a profit of
(57-52)* 7875= Rs.39,375/-

regards
shareparthi
for Fno calls
shareparthi***************

IMHO,
Above calculations hold good at the closing price of the day.(at which call is excercised)
else one can square the contract anytime and there difference in the premiums multiplied by the lot size is the profit or loss of the contract.