Option trading query

I have a doubt
In options we have to pay premium right
So example ( Nifty ltp 11000)
If I buy Nifty 12000 ce at 100rs option ×25qty.
Now my approx margin required is 2500 .
Now Nifty is trading at 12000 and option ltp is 1000
So technically profit is approx 22500rs

So can u explain what is the premium which I am paying and profit which I am receiving.
Would really appreciate if you reply
Thank you
Happy Deepawali.

When you buy an Option you will be paying say 100 * Lot Size, now if you square-off your position you will receive say 1000 * Lot Size and your net P&L be 900 (1000 CMP - 100 premium you paid to take the position) * Lot Size.

You should go through this module on Varsity, you will get to learn a lot more about Options.

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Sir so is it same logic for intraday

Yes, it is the same for Intraday.

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Thank u so much sir

Sir can u tell me what will be the premium amount for the above example
is it 2500 ?

Lot Size for Nifty is 75, so at Rs. 100 the premium will be Rs. 7500 (100 * 75).

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Oh I took bankniftys lot size
Thank u again

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