Kindly suggest if my strategy is right. Nifty spot is at 8524 and nifty 8500 call is at 115 while the put of same strike is at 71. I wish to carry them till expiry. If nifty ends on 8500 i might get entire premium (115+71=186). In fact, i will be not only safe but in profit till nifty is in range of 150 points on either side of 8500. Thanks n regards
You did not mentioned Buy / Short. From your words I understood You want to be on Short. Right ?
Then You are right.
But Think twice before shorting At the Money options. Because We can’t say when Nifty crosses your limits, It may be possible even on expiry day also.
Think about out of money options to short or Keep some hedging for At the Money Shorts.
Happy Trading.
yes i am talking about shorting otherwise how can i collect premium if i buy them.