Option writing margin and profit

S

sanjayjob89

New Member
#1
#1
Hi,
I'm newbie here. Can anyone help me with below example?

Suppose , If I write nifty 6000 call(2 lots) @10rs.
and square off my position @5rs per lot.
then approximately how much margin do I have to pay and how much profit I will make through this trade?
Thanks
 
ananths

ananths

Well-Known Member
#2
#2
sanjayjob89 said:
Hi,
I'm newbie here. Can anyone help me with below example?

Suppose , If I write nifty 6000 call(2 lots) @10rs.
and square off my position @5rs per lot.
then approximately how much margin do I have to pay and how much profit I will make through this trade?
Thanks
Click to expand...
1 lot of nifty is 50 so 2 lots is 100 quantity.
Profit is sell price minus buy price ..in this example its 5*2..i.e 5*100 = Rs 500/-

Approximate margin per lot is 20K..so for this trade approximately 40K

If you are new to trading..dont think about only profit..losses also can happen. So be prepared for both. All the best! :thumb:
 
Last edited:
S

sanjayjob89

New Member
#4
#4
This means it's futile to write option which has value below 100Rs.

Can you please tell me which broker allows option writing with lowest margin?
 
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