Comment on Basics on Options Shorting/Writing

Investor commented on 21 Jan 2015, 05:46 PM


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?

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