Hello Friends,
I have a really simple question to ask as its bothering me from quite sometime. As i am a beginner in Options trading, i am really interested in knowing about how the value of CALL/PUT is increased or decreased with the correcponding rise or fall of NIFTY.
Eg. Today i buy any CALL option lets say CE5200 at Rs.100 when NIFTY was trading at 5450. Now with the rise of NIFTY lets say by 10 points at level 5460, what will be the value of my CE5200 at that level.? How will this 10 point rise in NIFTY increases my value from Rs.100 onwards. In short, i want to know the incremental/decremental relationship or parameter between NIFTY and OPTION.
The opposite is applicable for PUT options.
Eg. Today i buy any PUT option lets say PE5200 at Rs.100 when NIFTY was trading at 5450. Now with the fall of NIFTY lets say by 10 points at level 5440, what will be the value of my PE5200 at that level.? How will this 10 point fall in NIFTY increases my value from Rs.100 onwards.
I hope my query is easy to interpret. Looking forward for the valuable advice of experts. Thank you in advance. :thumb:
I have a really simple question to ask as its bothering me from quite sometime. As i am a beginner in Options trading, i am really interested in knowing about how the value of CALL/PUT is increased or decreased with the correcponding rise or fall of NIFTY.
Eg. Today i buy any CALL option lets say CE5200 at Rs.100 when NIFTY was trading at 5450. Now with the rise of NIFTY lets say by 10 points at level 5460, what will be the value of my CE5200 at that level.? How will this 10 point rise in NIFTY increases my value from Rs.100 onwards. In short, i want to know the incremental/decremental relationship or parameter between NIFTY and OPTION.
The opposite is applicable for PUT options.
Eg. Today i buy any PUT option lets say PE5200 at Rs.100 when NIFTY was trading at 5450. Now with the fall of NIFTY lets say by 10 points at level 5440, what will be the value of my PE5200 at that level.? How will this 10 point fall in NIFTY increases my value from Rs.100 onwards.
I hope my query is easy to interpret. Looking forward for the valuable advice of experts. Thank you in advance. :thumb: