26th april 2012, Option trading (F&O Expiry)

#4
Current Nifty at 1:40pm -> 5200
Sell 5200 Put at Rs 13
Sell 5200 Call at 18
Nifty closing target: 5186
Net profit: Rs 17
What would be the net profit after expenses ?? I mean if you let them expire, you would have to pay 8 times STT, thus the net gain would be.. how much ?? Rs. 15 ??
 

TraderRavi

low risk profile
#5
What would be the net profit after expenses ?? I mean if you let them expire, you would have to pay 8 times STT, thus the net gain would be.. how much ?? Rs. 15 ??
no TP ..he has shorted so no 8 times STT......if somebody had bot options and let it expire then 8 times STT...:)
 
#7
No STT for Call option as it closed Out of Money on expiry.
For Put option: Nifty closed at 5189 so, it is 11 in the money and 8*50 Rs would be STT. So, net would be -6Rs loss.
Net profit= 18-6 = 12 Rs (excluding brokerage).

So, all in all no much profit. But look at the caclulation. Nifty closed very near to guess. This month Expiry day, the market was very flat..otherwise, will generally gives good returns...wait for the F&O. I will give trade call day or before the Expiry day.
 

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