Maximum loss in option trading

If I buy call or put option in this case how much I can loss maximum? Once I bought a nifty 7900ce option @ 107 and on second day in my posion buying price shown as 109.25 and on third day it’s 95. I can’t understand this. Please clarify.

Radhe46, option premium varies continuously as and when the market moves. Whenever you buy options (call option or put option) the maximum loss is to the extent of the premium paid. So in the example that you have quoted, in worst case situation you will lose Rs.107/-

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In this case If market closes above 8007 at expiry u make profit.

if market closes below 7900 at expiry you loose entire premium . 107 becomes zero.

for call option formula is ( STOCK PRICE - STRIKE PRICE - PREMIUM ) IF YOU BUY NIFTY EXAMPLE = 7900 - 7750 - 107 => 43 AND YOUR PROFIT IS 43 x 50 = 2150… FOR PUT OPTION FORMULA IS ( STRIKE PRICE - STOCK PRICE - PREMIUM ) EXAMPLE = 7900 - 7750 - 85 => 65 AND YOUR PROFIT IS 65 x 50 = 3250…