Doubt: Intraday Call Buying

Hi,

The question is very basic.

How is profit calculated for intraday call buyer?

Say BN opens gap up tomorrow, and proceeds to go higher. I buy 1 lot of 39500ce at Rs. 200 premium i.e. paying Rs. 5000 as total premium.

Now BN moves in my favour by 100 points and premium also goes up by say Rs. 100 (for simplicity) and I exit at Rs. 300. I had bought the CE at Rs. 200. Now how will my profit be calculated?

Does the BN have to cross 39500 (sept futures today 39295) intraday for me to make any profit? Or intraday call option buying and squareoff works just like stocks? (except ofcourse the premium has time value, volatilty value and intrinsic value).

I am not taking any trades now. I am trying to understand option calculations. So this is strictly an educational question.

Thanks!

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Pnl is simply sell price - buy price of your option.

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Thanks Man! Much appreciated.

I want to understand the withdrawal policy of ZERODHA. On 26th my withdrawable balance was shown 12868.I have submitted withdrawal request for 12600. Finally on 27th my bank account was credited with 3715. I don’t understand how ZERODHA arrived at a figure of 3715. I am invariably facing withdrawal problems. Please enlighten me on this issue.

Hi @Kripesh_Chandra_Gope sir,

The withdrawable balance (which u can see on console) can change post market closing if you have traded during the day. This is because all charges and obligations gets updated post the end of the day process typically between 5 PM to 9 PM.

It happens mainly if funds from trades are yet to be settled. The settlement cycle for equity trades is T+2 days T+1 days for futures and options.

Settlement cycle is the time taken for funds from stocks you sold or F&O positions you have closed to be credited to your trading account. In the case of intraday and F&O, it is the time taken for the realized profits, M2M, or sell value of options to be credited to your account.

you can read more about this here : What is the withdrawable balance?

Your problem will be solved soon as per rumours SEBI is working on cash settlement for fno obligation which will make things easier going forward and for cash buying t+1 settlement cycle is wip and will happen for all stocks soon