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

Venu commented on 28 Dec 2015, 04:46 PM

1. If you close your position before expiry, your profit/loss will be: (Value at which you sold) – (Value of at which you had purchased).

2. You’ve bought Bank Nifty 16900 CE at 126.77 which makes your breakeven 17026.77 (16900+126.77), if Bank Nifty closes above this price, you’d make a profit, else you’d make a loss. On expiry if it closes at 17500, your profit would be (17500-16900-126.77)*30 = 14196.90

Futures & Options are all derivative products which means they derive their values from the value of the underlying, the Bank Nifty Index in this case

I suggest you go through the basics of options here: http://zerodha.com/varsity/module/option-theory/

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