Comment on Basics on Options Shorting/Writing
commented on
21 Jan 2015, 05:46 PM
Hi,
NIFTY is at 8700 now, and still 7700 Put option of 29th Jan has 3 Rs premium. Is it not an easy “sell” and pocket the premuim? Or am I missing something here? Can we simply sell 3000 puts and pocket 90000Rs – its OI seems to suggest it can take that volume.
Of course, the risk begins ONLY if NIFTY slides down by over 1000 points in 5 trading sessions.
On the contrary, also curious to know who are the buyers of this PUT yet?