Hi All,
I've just started learning the basics of options trading and wanted to get few doubts resolved.
my understanding is in buy a call option, we earn from the change in premium. is this understanding correct ?
Further, consider the following scenario:
nifty currently trading at 9142
lot size 75
I buy a call option for strike price 9200 at 226 premium. the amount ill have to pay is 75 * 226 = 16,950
Say, after i buy and the nifty reaches 9180, will i make any profit if i sell at 9180 or will i have to wait for it to cross 9200 before i start seeing any actual profit from my premium?
I've just started learning the basics of options trading and wanted to get few doubts resolved.
my understanding is in buy a call option, we earn from the change in premium. is this understanding correct ?
Further, consider the following scenario:
nifty currently trading at 9142
lot size 75
I buy a call option for strike price 9200 at 226 premium. the amount ill have to pay is 75 * 226 = 16,950
Say, after i buy and the nifty reaches 9180, will i make any profit if i sell at 9180 or will i have to wait for it to cross 9200 before i start seeing any actual profit from my premium?