Comment on Basics on Options Shorting/Writing

Milan commented on 29 Mar 2015, 10:57 PM

Hi Nithin ji,
I’ve just read varsity option theory. And it clear my so many dounts. Thanks for developing tool like this.
But one thing is not clear to me yet.
Suppose bajaj auto currently trading at 2040 and i bought call option strike price 2050 with premium 6.35.
So assuming that ….
Case 1) traded price on expiry is 2056.35. Than no profit no loss.
Case 2) last traded price is 2054. So intrisic value as 2054 – 2050 – 6.35… Still loss is 2.35 … Will my lot premium will be receivable ? To decrease loss from 6.35 to 2.35 ?

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