# Can I book my loss at any moment irrespective of strike price before expiry

#### nitinj

##### New Member
Hi Friends,
I have bought call option of TataSteel May 330 @prem val 7.
Now its around 300 @prem val 2.

I can see LOSS here.

I am new to options trading so like to know some details.

My query is, Can I book my loss at any moment irrespective of strike price. Or I have to wait till expiry date to exercise my position.

Also, If I will square off @Prem val of 2, then my loss will be:
(7-2)*1000= Rs. 5000. loss
where, 1000 is lot size.

##### Moderator
Hi Friends,
I have bought call option of TataSteel May 330 @prem val 7.
Now its around 300 @prem val 2.

I can see LOSS here.

I am new to options trading so like to know some details.

My query is, Can I book my loss at any moment irrespective of strike price. Or I have to wait till expiry date to exercise my position.

Also, If I will square off @Prem val of 2, then my loss will be:
(7-2)*1000= Rs. 5000. loss
where, 1000 is lot size.

Yes you can sell this call anytime...no need to wait till expiry.But you have to sell call of same strike price...330 in yr case.

Loss calculation is correct .

#### nitinj

##### New Member
Thanks.
By this..
"But you have to sell call of same strike price...330 in yr case." you mean to say I have to sell same contract of 330 strike price(which i bought) OR when the price of contract reaches to strike price of 330.

##### Member
Yes, you can book profit or loss before expiry by squaring off your position.
Yes, you have to bear loss of 5k.

If you are new to options trading, you can refer the below links for some understanding about options.

http://www.investopedia.com/university/options/#axzz2IDajNNiS

##### Moderator
Thanks.
By this..
"But you have to sell call of same strike price...330 in yr case." you mean to say I have to sell same contract of 330 strike price(which i bought) OR when the price of contract reaches to strike price of 330.

Yes you have to sell the same strike price contract which you have bought. 330 call in yr case. You can sell it anytime. The premium will vary and will depend on the current price of the underlying. But dont sell 300 call , it is a different contract. Sell 330 call only and you can sell it any time.

ST

#### moneyshare

##### New Member
Dear Friends

I would like to know the brokerage and tax for the above trade i.e., call buying and selling. Kindly reply.

Thanks