can i sell an option call / put today … and buy it tomorrow …
by doing this can i make profit . is this possible ?
eg . sell option for rs.40 today and buy it tomorrow for rs. 20 …
yes… you can do it…
but remember option selling is very risky…
bczz when you sell any option… than your loss is unlimited…
unlike buying an option…in which your loss is limited to your total premium…
how option selling is risky … as above example … if i sell at 40rs take 1 tot as 100 - 40*100 = 4000 …
so i will loss 4000 right or …
what will happen . explain pls …
Option selling is very risky.Option selling can suffer unlimited loss for Example if you have sold icici bank 290 put at 2 rs and u remeber icici crashed 5% intraday for few seconds.You might have lost 15*2750 for being a writer.
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Bhai, manlo thumne aaj Call option ko 40rs sell kiya with the assumption tht it will go to Zero, right. Now wht if the market opens gap up n ur call option opens at 150? Think abt tht. Similarly fr Gap down days.
If u want to know extreme things, just access historical derivative contract values on nse website. Just compare the previous day values with Demonitisation day, Brexit day, Pak surgical day, NorthKorea bomb test day.