How to calculate profit and loss of an options?

General
1

IF I BUY SINGLE LOT (75) OF NIFTY STRIKE PRICE IS 8400 CE @ 41 IF ON EXPIRY NIFTY IS TRADING AT 8900 AND MY PREMIUM GOES TO @215 THEN WHAT I KNOW PROFIT WOULD BE

(8900 - 8400) X 75 - 41 X75 - BROKARAGE

MY QUESTION IS

WHAT ABOUT MY INCREASED PREMIUM (215-41)?

WILL IT BE ADDED TO MY PROFIT OR NOT BE CONSIDERED.

IF I AM WRONG PLEASE CORRECT ME

2

If you bought Nifty 8400 calls at 41, and nifty closes expiry at 8900, your 8400 calls premium will be 500 (8900-8400). Your profit will be(500-41)*75.

Suggest you to go through the futures and options module here: http://zerodha.com/varsity/

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3

thank you sir.

4

how to calculate estimated profit and loss in options before taking trade ?
I am buying 41600 CE in banknifty of 16 Feb expiry, the delta value is 0.5. now if bank nifty index rise by 100 pts then what will be my estimated profit?

5

If there’s a 100 point in your direction n delta is 0.5, the option will move by 50 points. So assuming you have one lot, profit will be 25*50 = 750 per lot

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