Comment on Option buying: The riskiest trade out there

Jitesh Khandelwal commented on 01 Jul 2021, 08:50 PM

Similarly, if you buy 1 lot of Nifty calls with Rs 7500 as premium, the exposure to Nifty is Rs 12L and not just Rs 7500.

Why is the exposure 12L in the above case? Isn’t exposure capped by the total amount the investor can loose which is only 7500 in this case.

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