If i write Nifty July25 8000 PE OTM option for Rs.57/ per lot and 7800 PE long for Rs.32 on 1.6.2015 and spot nifty on 2.6.2015 is 8236 and the premium is 104 and 59 respectively. can i square off the position? what will be my profit? how it is credited on daily basis or on expiry date?

If you short puts has gone from Rs 57 to 104, you make a loss of 57 points.

If your long puts go from Rs 32 to Rs 59, that is a profit of 27 points.

So your loss will be 30 points. (27 -57).

Your long options will increase in value and you will see the profit only once you have booked it. Your short optionst there is a MTM daily, so the margin will go up as premium increases.

Check options module: http://zerodha.com/varsity/module/option-theory/

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SO , he lost 47 points (104-57) , not 57 and made 27 points (59-32)… AT the end it will be -47 and +27 , you will be loosing 20 points , How did he make 27 Points.

corrected it muthu