Hi I am a newbie to option trading,I have got a doubt,For eg i bought a call option in intraday and the strike amount is in the money.for eg sake the option premium paid by me was 10.Then the price of the asset increased.Then I can be profitabile only after recovering the entire premium paid by me that is rs 10 + 10= 20 like in expiry of contract or else I will be profitable if my premium goes to 11
The calculation is easy, as you bought Option at Rs. 10 and sold it at Rs. 11, you will be making Rs. 1 profit on this trade. The calculation is same as you would do when you Buy/Sell stocks, nothing complex.
Also to learn more about Options, I’d suggest you go through this module on Varsity: