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| Discuss Index Options at the Derivatives within the Traderji.com - Discussion forum for Stocks Commodities & Forex; i am pramod from hyderabad.Please clarify my doubt regaring index options. On 28th april ... |
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#1
29th April 2008, 04:31 PM
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Index Options
i am pramod from hyderabad.Please clarify my doubt regaring index options.
On 28th april 2008 i have buyed put option of strike price 5100 at 147 rs/- of 50 lot size. on the same day Nifty closed at 5089 and the price was 162 rs/- so here i am in-the-money i.e am in profit. but am really confused how to calculate profit provided with above data. 1)is it (162-147)*50= 750 rs/- or 2)is it (5100-5089)*(162-147)*50=8250 rs/- i couldnt understand how to calculate. even though the Nifty index is not below put option 5100 the price is above 147rs/- few times so can i sell at this time also for less profit? PLease am really in need to get clarified by this...Thanq. 
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#2
29th April 2008, 05:26 PM
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Re: Index Options
Hi:
Consider this: You buy a Call/put option with strike price 5100. Today it is at X price and say tomorrow Y. The profit or loss is (Y-X)*50 Say you bought at 147 (X) and you sell at 162 (Y); your profit is (162-147)*50 = 15 * 50 = Rs. 750
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#3
29th April 2008, 05:34 PM
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Re: Index Options
Quote:
But what if nifty goes below 5100 like i said 5089 is it like (5100-5089)*(162-147)*50=8250rs/- ? I have seen this above calculations in many sites? if this is wrong then why do people say index options are having higher profits than any other considering my investing 7500rs invest ment and gaining 750.
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