Comment on Basics on Options Shorting/Writing

Ravi commented on 08 Jul 2016, 11:05 PM

Hi Nithin,

I am providing the example here for my query..

Say some stock (for eg:Adani Ports) quoting at 215, and it’s 200 PE is quoting at 3.9, and with the assumption that, this stock will not go down below 200 on expiry date, I have sold stock 200 PE (Instrument Type: OPTSTK, Option Type: PE, Action: Sell, Strike Price: 200). In this case, 9750 will be credit to my account.

1.If the stock close above 200 )for eg: 200.5), then 200 PE becomes 0…in this case, my profit will be 9750 right?
(somewhere I read, at selling point STT will be charged..where can i see that charged amount?)
2.If the stock closes at 199, then 2500 will be deducted, right?
3.In the above selling scenario case, how much amount would have blocked, considering 15 more trading days exist before expiry?

Please reply..Thanks.

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