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?
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.
How to calculate profit? How much would I have made if I sold at 110 and bought back at 85.
75*25?
EDIT:
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…