What will be the effective profit & loss

#1
Suppose Nifty is trading 5000 on beginning of the month if i take the position in option as follows:

Put option short at Nifty 4500 Premium 15

Call option short at Nifty 5500 Premium 18

Nifty remain in between 4500 to 5000 during the contract period

What will be my profit or loss.

What risk involved in above contract?

Please explain
 

soft_trader

Well-Known Member
#2
Suppose Nifty is trading 5000 on beginning of the month if i take the position in option as follows:

Put option short at Nifty 4500 Premium 15
Call option short at Nifty 5500 Premium 18
Nifty remain in between 4500 to 5000 during the contract period
What will be my profit or loss.
What risk involved in above contract?
If you write 1 lot 5500CE and 4500PE and Nifty expires in between these strikes then, you will gain the premium on the expiry day.

Your total profit will be Rs. 1650/- before taxes and brokerage.
 

a1b1trader

Well-Known Member
#3
How the profit and loss is calculated in option trading. Can you please explain with the help of some examples.
Thanks
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?