So anybody is actually in profits just trading Options

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respected sir ,
suppose abc stock is trading at rs 50 and i like to buy call of 55 and put of 45 at a premium of a call is 7 and a premium of put is 6 ,

tomorrow abc is trading at 56 now my confusion is this where i have to book profit above the strike price or above the break even point


please help
 
Hello All, i have a small query about ATM pricing of Options for Calls.

Suppose NIFTY as of today is trading at 5350. So which strike price we need to consider for ATM Call option.? Will it be CE5400 or CE5300.

I am actually confused owing to the definition of ATM which says Strike price = Index Level. So where will the index range between 2 strike price falls in ATM.?
 

comm4300

Well-Known Member
Hello All, i have a small query about ATM pricing of Options for Calls.

Suppose NIFTY as of today is trading at 5350. So which strike price we need to consider for ATM Call option.? Will it be CE5400 or CE5300.

I am actually confused owing to the definition of ATM which says Strike price = Index Level. So where will the index range between 2 strike price falls in ATM.?
5300CE would be ITM [in the money] as index is currently at 5350.
Hence the next strike = 5400CE qualifies as ATM.

and for puts 5300PE would be ATM.

best regards,
 
Last edited:

comm4300

Well-Known Member
Thanks. But my query was in general index value terms. As of now Nifty is at 5430, so will ATM be CE5400 or CE5500.?
ok, let me try this again.

index = 5430

5400CE = does it have intrinsic value? yes, so it becomes ITM.

what then is the next strike?

5500CE. that becomes ATM. At the money.

hope it clarifies.
 
If you are already losing money in Options, I would suggest you to subscribe to one of those tips sites that charge Rs. 5000 per month and give you 1-2 calls per day. See if that works out.
 

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