Comment on Basics on Options Shorting/Writing

Milan Bhogayata commented on 17 Mar 2015, 10:03 AM

Hello Nithin,
i’m a new trader… currently i’m trading in NIFTY INDEX OPTION CALL/PUT and Earning Rs.500 Daily. so i want to know that suppose i have bought NIFTYMARCH26 CE 8800 AT 104. and Current Price is 47.

so if my qty is 50. what will be my loss on expiry day ? i want to trade in 1000s qty in future. so i want to clarify it before do it.
And one more thing…. i’m simply buying OPTION INDEX (NIFTY/BANKNIFTY) CE/PE and sell it same day and getting profit. is option writing is more risky ? i’m very confuse about short call/Long put …etc.
if i’m writing option and my option is running in loss .. than can i block it anytime or exit from my own option ???? if yes then how …..
thanks in advance

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