Assume I bought 8600 CE at 75/- Premium. and sold at 85/- with a profit of 10/-per lot. I am unable to understand, as per formula Break even point. Strike price + Premium.( 8600+75) indicates nifty should trade above 8675 to be in profit. but I have already got 10/- profit per lot even though nifty not even crossed 8500. Please explain the profit and loss in this case.
you have calculate above only if you are holding till expiry , as if you have already sold out with 10 points profit it considers as intraday
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