Nifty Options (Selling) profit calculation question?

Hello fellow traders,

Today for the first time I attempted writing (selling) a nifty option, but I cancelled the order before it was fulfilled as I had some doubts about it.

The question is mainly related to profit calculation and closing the position.

So when I sell 1 LOT of Nifty 10000 call at 110 what happens? How do I get out of this position? I want to get out of it when it reaches 85/80.

Do I just simply square off in Admin Positions window?

How will the profit will be calculated? and how much profit/loss will be there in above scenario?

Thank you for taking time to reply :slight_smile:

I am trading intraday

Premium price 110, strike price 9964.70
At 80, Strike price 9898.60

Thank you,

P.S. Another unrelated question. If I buy one lot of nifty option and hold it overnight, will I have to pay MTM, if the price goes below bought price? As is in the case of buying/selling one lot of Nifty futures.

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You sell first at 110 and buy back (Sq Off) at 85.
Profit 25. Here also no MTM if you hold overnight.

Option buying no MTM.

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How to calculate profit? How much would I have made if I sold at 110 and bought back at 85.



So no matter where the price goes below 110, I will still make Rs. 8528.00/- only, as profit. (As according to Zerodha varsity and span calculator)? On closing my position…

If you do intraday sqoff for 25 points. Then profit is 75*25 = 1875

If you keep till expiry and it closes below your strike price then your profit is 75*110

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Wow, answer in two lines :slight_smile:

So simple. Understood everything. Thanks for keeping it so simple and uncomplicated.

Now waiting for tomorrow :wink:

BTW, STT will be charged on expiry, right?

Also, how much loss squaring off at 115? 75*5 right?

Yes. STT if exercised is 0.125%.
= ( 9900 + 110) * 75 * 0.125 /100

This is only for options long positions.

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