Comment on Basics on Options Shorting/Writing

Nithin Kamath commented on 25 Jul 2014, 08:13 PM

Swapnil, if you have shorted 2650 Calls and if stock price of Maruti is below 2650, you can let your options expire, because you will get to keep the entire premium as profits. There is a problem with stock options because of liquidity, if you want to exit you might not get the best price on the exchange.

But if you want to exit at 1 and the seller is at 3, the trade won’t go through.

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