Beginner question

Consider this situation.
Today DLF-CA-620 LTP is 67 , and DLF lot size is 400 , so my Call-Option purchase cost will be 67*400 = 26800 .
And tomorrow DLF-CA-620 LTP is 75 , so to get profit I have to sell this option. If I sell this option, I will get profit of 8*400 = 3200 . And now I am free of all rights and obligations ?

Is this selling the same as writing a call option ?
And, Is writing a call option is conceptually same as short-selling an equity ?

pokrate,

In your case you are squaring off your previous position & in 'Writing' you Sell first then square of the same by buying later.

Asish

Thanks a lot for the reply !
Now, what will be the total cost involved in say Buying a Call of DLF ? And say I want to sell the call same day to get profit , what will be the cost involved ? Please explain with an example. I am too much worried about the risk involved .

pokrate,

In F & O same day or next day is same brokerage.

Asish

Asish da,

its half incase we square off on the same day @ ICICIDirect.

PS : Only for future and not for Option @ ICICIDirect

Nitin

Did not knew ,this is news to me.F & O and Intraday brokerages are same in most of the broker house & in case of F & O we have to make good the MTM of the day i carry over.