If I Short PE 8600 @ 70 Rs. Margin blocked aprox. 16000. Is there any chance of loss. And at which time i lost my full amount

If I Short PE 8600 @ 70 Rs…Margin blocked aprox. 16000. Is there any chance of loss. And at which time i lost my full amount…

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hey man , as you know expiry is proceding and option writing is not a thing which can be done by anyone , if nifty closes at or above 8600 on expiry , you will keep whole 70 rs premium ,and if nifty does not cross , the loss depends upon how you get out of your situation and take my words i am also a option writer and my success ratio is almost 98 to 99 percent and trading with huge capital of 30 lakh in zerodha and want to tell you that option writing is one thing which will give you very consistent return irrespective of market condition but with prerequistie condition that your strategy will be good, first learn basics of option writing , it has very deep breath

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Hello in shorting options the profit is limited which is the premium that you receive but the loss is unlimited. In your case if you short puts and the market is falling the put options premium will increase. So while closing your short position in a falling market you will end up paying more premium than you got from shorting. Hope this helps mate.

If you are able to buy this put option before expiry at a price below 70 , you are making a profit. 

If you are waiting till expiry , you will make a profit only if Nifty stays above 8530 (8600-70). If it goes below 8530 say 8520 , you will make 10 points loss (8530-8520).

Hope it explains.

hey man , if you have any question just ask on trading Q&A , i have also learn all things on this site

agree with you nishant…

Hey I want to short 8700 PE Dec. Expiry…
Is it possible?

suraj , how many expiry are there on BSE ? did you now , if you know please tell me i am finding this from morning

@nishant
I dont know about BSE, but whatever it shows in Market Watch while adding the scrip those many expiries are there in SENSEX and BANKEX.

In BSE there is weekly, monthly and long dated in index options and weekly, monthly for stock options. For futures there is monthly with 3 month contracts to trade…