i bought a out of the money call option of a script. what is the procedure to square-off. Whether to sell the same quantity and contract. or is there any square-off procudure. My transactions or below.
BOUGHT CALL OPTION TVSMOTORS-260-CE-24DEC14 PREMIUM 3.60 on 1-DEC-2014 SPOT IS 233
on 4-DEC-2014 SPOT IS 252
CALL OPTION PREMIUM TODAY IS 8.40
if i sell the call option @ 8.40 by today.(but option expires on 24-dec-14 )what will be my profits.??
You need to sell the same contract for same quantity of shares to square off completely your position.
The profit would be close to 4740. Have a look at the link below to calculate your profits, you need to put the premium values and lot size 1000 in the calculator. Once it shows the profits, you need to subract stamp duty charges by manually calculating based on your state.