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| Discuss Understanding option basics at the Derivatives within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Hi I have a query regarding options. Its a very basic one. Suppose I buy ... |
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#1
28th July 2008, 03:30 PM
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Understanding option basics
Hi
I have a query regarding options. Its a very basic one. Suppose I buy a nifty 4500 Aug call@25 then a premium of Rs.1250 is debited from my account. Spot nifty is 4350. For eg on 4th Aug spot nifty is 4425 and call value is 35 then can i make profit of Rs.500 (Rs.35-25=10*50=500) by suqaring off at Rs.35. In that case what happens to Rs.1250 initially debited? regards Sumaant 
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#2
28th July 2008, 03:42 PM
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Re: Understanding option basics
Hi, Sumaant:
Welcome to the forum. If you sell the call at 35, 35 x 50 = 1750 - brokerages & other charges will be credited to your account.
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#5
28th July 2008, 09:48 PM
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Re: Understanding option basics
Quote:
Would you ask : If i buy one reliance share at 2000 and sell it at 2200 i gain 200/- but what will happne to my initial 2000 that was debited to my account when i bought 1 share!!! Its exactly the same!!!!
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| The Following 2 Users Say Thank You to rkkarnani For This Useful Post: | ||
franktrader (28th July 2008), leo_3455 (28th July 2008) | ||
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