gENTS,
pLEASE ANSWER MY QUESTIONS,acept my thanks in advance.
case-1
A friend of mine has enquired about this situation.
As on Last trading day, 2sep,say
I SOLD a Call option,one lot of Nifty 3400 strike,28sep expiry price for a premium of 103.5 rupees.
nIFTY spot was at 3433 at closing.
-----------------------------
The charging by broker--how is it done?
margin at 10%
brokerage
premium
The difference between 3400 strike price and current nifty 3432,ie 32 points surely gets charged at 32*100=3200 per 1 lot
-----------------
How can I make a profit?
If I buy back the Call option,strike3400, when premium drops to 90 rupees,
what will get?
just difference in premium?
prev sold premuim=103.5
now buy same call back at premium =90
difference=13.5,multiply by 100=get 1350 for 1 lot.
I gain 1350 rupees. correct?
What about the difference in nifty,the amount they collect at 3200?
will I get it back as I buy the call?
Under current market conditions,
what would be the right call strike price?
Nifty spot=3433
CALL to Buy =3450,slightly higher than current nifty
--------------------
How to make most of selling 3400 call of nifty options?
wHAT ABOUT CONSIDERING BUYING A PUT OF 3450? OR 3400?
IDEAL thing would be buy below current nifty, ie buy put,sept 28 expiry at 3430?
If mkt goes below 3430, i gain.
otherwise WOULD I loose all AMOUNT I PAID FOR THE PUT?
pLEASE COMMENT.
Thanks for your time.
rvlv
pLEASE ANSWER MY QUESTIONS,acept my thanks in advance.
case-1
A friend of mine has enquired about this situation.
As on Last trading day, 2sep,say
I SOLD a Call option,one lot of Nifty 3400 strike,28sep expiry price for a premium of 103.5 rupees.
nIFTY spot was at 3433 at closing.
-----------------------------
The charging by broker--how is it done?
margin at 10%
brokerage
premium
The difference between 3400 strike price and current nifty 3432,ie 32 points surely gets charged at 32*100=3200 per 1 lot
-----------------
How can I make a profit?
If I buy back the Call option,strike3400, when premium drops to 90 rupees,
what will get?
just difference in premium?
prev sold premuim=103.5
now buy same call back at premium =90
difference=13.5,multiply by 100=get 1350 for 1 lot.
I gain 1350 rupees. correct?
What about the difference in nifty,the amount they collect at 3200?
will I get it back as I buy the call?
Under current market conditions,
what would be the right call strike price?
Nifty spot=3433
CALL to Buy =3450,slightly higher than current nifty
--------------------
How to make most of selling 3400 call of nifty options?
wHAT ABOUT CONSIDERING BUYING A PUT OF 3450? OR 3400?
IDEAL thing would be buy below current nifty, ie buy put,sept 28 expiry at 3430?
If mkt goes below 3430, i gain.
otherwise WOULD I loose all AMOUNT I PAID FOR THE PUT?
pLEASE COMMENT.
Thanks for your time.
rvlv