Banknifty weekly options

General
1

I sold banknifty weekly option out of the money contract @10 Rs in day end it reaches 0.5rs…with no buyers…what will happen to this…I will be in profit or loss?

2

If your option expired out of the money, the entire Rs 10 is your profit. If it expired in the money, how much ever it was in the money you have to deduct from Rs 10. The rest is your profit. Suggest you to look at

3

I had a doubt here, do all out the money options come to a price of Rs 0.05 at expiry?? Say the bank nifty strike 25700 CE was purchased at 20 rs some days ago, and bank nifty is about to close at around 25690 near to the strike, still the premium would come to 0.05 at expiry ?? @nithin

4

Thanks…really helpful

5

Yes but only if the underlying (bank nifty index) closes below the strike price for which u wrote the option.

At times, bank nifty can be highly volatile & unpredictable on expiry day, especially monthly expiry , and the volatility is extremely high which may give you nightmare.

6

Hi,

Can you pls help to understand how Bank nifty PE/CE selling… Why so much money required for it? Also how the profit is calculated if I sell at 10 and buy back at 0.05? The total profit can someone help pls?

7

Yes, close more than 25720 than you are in profit

8

Yes, close more than 25720 , you get profit

9

Can you tell where I can calculate how much margin is required for selling options on weekly expiry bank nifty, in zerodha calculator, it only shows monthly expiry margin.

1 Like
10

Same margin monthly and weekly ± 5 %

11

please guide any one plz