Comment on STT Trap - Options Expiry - NSE BSE MCX-SX

sachin commented on 12 Nov 2015, 02:06 PM

I have one very basic doubt.
I write an put option at strike 7700 at premium 45. Spot is 7900.
So what happens as and when premium moves up or down. Do the buyer has the option of squaring it off and will i be assigned in that case?
How will it affect the option writer if premium moves up and down , but spot never goes below strike until expiry.?

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