Comment on Theta

Shrenik Shah commented on 22 Jan 2016, 12:53 PM

Assume that I sell a call option at 8700 Strike Price(Jan expiry option) on Jan 1st 2016 at a premium of 80Rs (OTM) . Somehow nifty keeps falling goes towards 8300 and by the end of the expiry it only recovers and closes at 8500. Does this mean, I will retain the whole premium because it will eventually drop to 0Rs?
I am asking you because I want to know, if I am at thinking on the right path? Assuming the other thing remains constant.

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