Exiting Options

Hi Team, This is regarding options exiting. 1.Say I buy Axis Bank 450 CE with premium of 2 Rs with current month expiry.So the amount would be 1200*2=2400. After two days the premium increase to 3 and I am in a profit of 1200(3-2) = 1200.Can I exit at this point for profit of 1200.I am only trying to get profit for premium appreciation and don’t want to exercise the contract.

Of course, you can. You basically book the profit (or loss) on premium here. There is no need to hold the contract till expiry.

Remember - you can buy and sell an options contract any number of time till expiry. Or you can choose to hold till expiry.

Thanks ,that helped.