Kindly clarify my doubt in BUYING CALL OPTIONS.
Example:
NIFTY 50 trading at 18000 Premium Rs. 100 for strike price 18500 on day 1 for Buying a call option.
On day 15
Scenario 1:
NIFTY 50 trading at 18700 premium Rs. 150
If Closing the trade, what will be the profit or loss?
Spot price 18700 - 18500 = 200 (or)
Premium 150 - 100 = 50
Scenario 2:
NIFTY 50 trading at 18300 premium Rs. 80
If Closing the trade, what will be the profit or loss?
Spot price 18300 - 18500 = -200 (or)
Premium 80 - 100 = -20
Scenario 3:
NIFTY 50 trading at 18500 premium Rs. 90
If Closing the trade, what will be the profit or loss?
Spot price 18500 - 18500 = 0 (or)
Premium 90 - 100 = -10
Scenario 4 on expiry day:
NIFTY 50 trading at 18700 premium Rs. 10
If Closing the trade, what will be the profit or loss?
Spot price 18700 - 18500 = 200 (or)
Premium 10 - 100 = -90
What will happen if I am not closing the trade.
Whatever it is, if I am excercing the contract, should i buy the NIFTY 50 by paying the spot price or strike price?
If I bought NIFTY 50 by paying spot or strike price, how to sell?
GTT available for entry, SL, profit in BUYING CALL OPTION?
Thank you.