Sir/ma’am, i have a question releated to call option buy
if I buy a nifty 11400 ce at the premium price of 85.90 some days before for the expiry of 10 Sept but now the premium is below 20 -15 say 11 or something and on expiry it is near 7 or 6 but the nifty is tralling at 11370 or ++ and I dint exit from it coz premium is too less which I paid
…thn what will happen is i get premium amount if I exit from the call option on expiry which the premium now is 6 rs …?? plz help
When you square-off you will get whatever is the premium at that time.
Suggest you read the below module on Varsity to know more about Options.
which means I do wait to exercise coz now I m in loss if I exit my position with 9-10 premium …and if the option gets exercised 11400 above thn will i get my premium back or do I need to sell the exercised option
Doesn’t work that way. For your 11400 CE to breakeven, Nifty will have to close above 11485.9 (Strike Price + Premium Paid), if Nifty closes below 11400 your 11400 CE will expire worthless.
This is a vast topic to explain, as I said above give the Options Theory module on Varsity a read, you will get better insights into Options, everything has been explained in detail there.
ok…if nifty closes in my favour tum it’s gud to me but if not then I lost my entire amt …got it …
now if today I exit from my call option with loss thn what are stt charges …
and if the position is itm will i need to carry the total amt 11400+85.90 *75=17842.5 in my account ?
and do I need to exit today with loss coz I also don’t think tht nifty will close at 11485 today …can u plz suggest me for it ?
You can calculate all the charges on Brokerage Calculator.
When you buy an Option you pay the entire amount upfront, you don’t have to maintain anything in your account.
Honestly, the decision is yours to make.
What I can do is suggest you to learn more about Options, the basics and how they work before trading them.
ok thank u so much @ShubhS9 and I read it on varsity complete whole modules …but here get confused thts why asked …and really appreciated for ur response thank u …
one more if nifty closes near or above11400 thn what will be the scenarios in my case if nifty close at 11400 or nearby?
and if don’t exit …and leave for auto expire thn will i get my premium or less in premium ?
How much you get depends on Intrinsic Value of the Option, if market expires at 11420 the 11400 CE will have Intrinsic Value of 20, so that will be the price at wich the 11400 CE will be settled on expiry.
If nifty Expire at or below 11400 you will loose you whole money if you wait till the expiry time
If nifty move above 11400 you will get premium based on how many points it moved above 11400
If it closed at 11410 you will get 10 points back if it closed 11450 you will get 50rs back.
I suggest you to please do paper trade before doing options and please understand the options knowledge properly .
10 points means 85.90 +10=95.90 *75 right and 50 is as same ?
Forget about what u paid.
I’m saying only about what you get when you wait till option to expire.
ok thank u so much @Laxman_lucky need more research n knowledge before doing option will do …now take exit whatever paid to me it’s gud rather to wait till 3:30 pm
I suggest you to please do paper trade for atleast 3 to 4 weeks before applying any kind of strategy in options.
To paper trade in options https://opstra.definedge.com/ this website is very useful for you
Happy trading…
ok thank u …yes really need more analysis and research before entering …
and now in my case I was totally behave in opposite direction but still need to bear loss if I want to learn