What Will Be My Position If Trade In This Passion ??

I am a newbie in Options trading, I just thought a way of doing a trade in options, but I am not sure whether it is correct or not, as I have done only in cash market so for and in options its lots more different.

Lets say an example of trading...

Current Nifty is on 4600 (14th Aug. 2009) and I buy in this way..
Expire Date: 27 Aug. 2009
Nifty 4400 Put - 1 Lot (with premium of Rs.60 = Rs.3000 approximately)
Nifty 4800 Call - 1 Lot (with premium of Rs.60 = Rs.3000 approximately)

and now the scenarios in this way on 25th Aug. 2009
1. If, Nifty surges to 4900 on this date, what will be the positions of this both Put and Call lots?
2. On other side if, Nifty crashes to 4300 on this date, what will be the positions of this both Put and Call lots?
3. If, Nifty has volatile and stays on 4600 on this date, what will be the positions of this both Put and Call lots?
4. What will my position if I didn't squareoff both Put and Call on 27th Aug. 2009 if Nifty is on 4300, 4600, 4900, ?

What will be my Total Profit/Loss on 25th Aug. 2009 when I plan to squareoff?

Since, I am newbie in Options, please correct me, if any mistake, Thanks.

I like to add bit more query on this..

I read in other thread, in options, our maximum risk is limited (in above example) Rs.3000+Brokerage and the profit will be unlimited.

So, even the Nifty goes either way, since I bought both Call and Put each one lot, one will be in lose and another will be in profit.. If Nifty goes up and the Call lot go up, say 200 points plus and eventually the Put will be in lose, for the call profit will be 200*50=10000

Call Profit - (Put Lose+Brokerage)
10000 - 3300 = 6700 in profit

Is this calculation is correct or am I missing something here? Please someone reply..

Market can only be at one place at a time. so one leg is guranteed looser in this trade.

Case 1 - Nifty at 4900 = Put will be worth 0, and call will be worth 100 rs = overall value of the position = 0 + 100 = 100.
You paid 120 to open the position, which is worth 100 now.
Case 2 - Nifty at 4300 = Put will be worth 100, and call will be worth 0 rs = overall value of the position = 100 + 0 = 100.
You paid 120 to open the position, which is worth 100 now.
Case 3 - Nifty at 4600 = Put will be worth 0, and call will be worth 0 rs = overall value of the position = 0 + 0 = 0.
You paid 120 to open the position, which is worth 0 now.
4) If you did not squareoff before the expiry then exchange will settle it on expiry day.. and depending on settlement value you can calcualate
your Profit/loss as given above.

If you squareoff before the expiry.. then u will get the market price going at that moment. So depending on what price u are getting, u can easily calculate your P&L.

Hope this helps.

To gain more insight into option trading, u can refer to my other thread "Low risk option trading strategy - Spreads" in options section of the forum. That should answer many of your questions..

Happy Trading.

Thanks AW10 for your reply. So, in all the cases you stated above will be in loss in final total from my investment..? I will get you on your thread as well..

you lost all the money