How does option selling become profitable?

purusharth_pandey · June 25, 2020, 4:31pm

Suppose if i sell call option at 13(lot size 800) and option expires at premium of 3.
So what will be my profit on expiry of option?

Laxman_lucky · June 25, 2020, 5:21pm

Simple 13 -3 = 10
So 10 X lot size 800 = 8000
8000 will be ur profit

tradefo · June 25, 2020, 5:22pm

What’s the strike price? And at what price underlying closed?

purusharth_pandey · June 25, 2020, 8:01pm

Ok.
Then on expiry i will receive 8000 as premium

purusharth_pandey · June 25, 2020, 8:01pm