Hi , I am getting confused about the OPTION EXPIRY.? Suppose i have sell one lot (4000) shares of PNB90CE option at Rs .05 and at the day of expiry PNB closes on Rs 78. As i have collected the premium Rs .05 that is Rs 200 total.? how would it effect my overall profit and loss.?
If it expires below 90 then option expires worthless, so whatever premium u got is ur profit, thats it
But usually i hope u know Option selling is quite dangerous
If it goes even from Current price 76 to 80, this option may go from 0.05 to 0.10.
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