Comment on The Option Greeks (Delta) Part 1

jay lakhani commented on 03 Jan 2018, 09:47 PM

sir,
i have two question about maruti.
1.spot price-9647(down from 9705)
but CE of 9500 was increased by 8000 percent.
as the stock price came down than why call option of 9500 increased by these much amount.
2.if i bought call option of M&M with 770 at 11 rs and stock is trading at 757rs.
as i am bullish on stock and stock goes up and near to 765 the premium is also increase according to delta.but as per our calculation i made profit after 770+11 premium.but as stock goes up and as premium than if i sell my call option on higher premium than it would be profitable deal or not?
thank you.

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