# Questions related to put option

#### nitinbourai

##### New Member
i have a problem in understanding the options
lets say i buy 1 lot of unitech put options with a strike price of 75 at 0.8
and now if put moves to 1 so if i sell my lot or exercise my put options do i need to take 1 lot as a delivery or i will earn a profit of 0.2 on 1 lot

= 4000 * 0.2 = 800 ?

i am confused

lets say put option strike price is arrived and unitech reaches 70 rs
what will happen to the put call of 75 if i dont sell my option ?
because if the stock is volatile it can go down quickly
in that case what will happen please explain!

#### rajeabc

##### Well-Known Member
i have a problem in understanding the options
lets say i buy 1 lot of unitech put options with a strike price of 75 at 0.8
and now if put moves to 1 so if i sell my lot or exercise my put options do i need to take 1 lot as a delivery or i will earn a profit of 0.2 on 1 lot

= 4000 * 0.2 = 800 ?

i am confused

lets say put option strike price is arrived and unitech reaches 70 rs
what will happen to the put call of 75 if i dont sell my option ?
because if the stock is volatile it can go down quickly
in that case what will happen please explain!
If you square off your put(sell)(you need not to take delivery) then you will get profit of =4000*.2=800-brokrage.

If Price comes down to 70 and you don't sell then on day of expry you will get =4000*(75-70-.8)- other charges

#### nitinbourai

##### New Member
what will happen if unitech moves to 80 and put option with a strike price of 75 comes down to 0.5

do i need to exercise the option compulsory ,is there any penalty for not selling the put

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#### nitinbourai

##### New Member
there is a validity field when i buy a options
two types
1)GFD =good for day? what it means
2) IOC ?