Comment on Basics on Options Shorting/Writing
commented on
18 Oct 2014, 05:25 PM
1. Only the options which are out of money on expiry will be 0. So if Nifty closes at 8000, 7900 Call will close at 100, and 8000 call will close at 0. 8200 puts will close at 200.
2. Yes, you can short and buy back immediately or anytime before the expiry day.
3. If you have bought 1st week of the month for Rs 5 and if NTPC is still at 140 at the end of the month, the premium would have already dropped below 5. If NTPC starts going above 140 and goes to 145 in the last week, it will definitely go above Rs 5.