Comment on Basics on Options Shorting/Writing

prasad commented on 24 Apr 2015, 02:40 PM

Hi,
Very nice article…
I have a question…

currently NIFTY is trading @ 8336..

Expiry date : 30APR2015

just 6 more days to Expire..

So my question is ..what if we sell/write OTM calls…
Say 8800 @2.55 (current premium)

as there is no way that…NIFTY will reach above 8800..
so option writer here will keep his premium (110rs in this case) with him at the expiry?

in simple sentence..

what if we sell/write OTM calls/puts near to the expiration ? is there any issue in it?

I believe there is some thing in it..as every body will do it and get some profit 😉

I just wants to know the back ground in it…

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