Comment on Basics on Options Shorting/Writing

swapnil commented on 14 May 2014, 04:51 PM

Dear Nitin,

Thank you for your reply and clarifying my doubts. say if I short reliance for strike price of 990 and at expiry it closes at 1050 means my loss will be (1050-990)*lot size=60*250= 15000. Right?
There is no chance of stock settlement, but a buyer want an stock settlement then what is my maximum loss? Is it 1050*250= 262500 or still 15000?

Thanks,
Swapnil.

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