Hello friends I am new to option trading . Through browsing over various websites I have come to know that option selling is a high probability profit trade. Now I have some questions so could you please answer them
Stock is IOC cmp 110.55
I want to sell its 125 CE Feb at premium 0.1
Lotsize 4000
So what will be my profit if it never reaches 125 till 27 Feb expiry suppose it hit 123 high but not 125
I guess profit will be 400
But to get this profit Do I have to square off my position or just leave it as it is ?
And wat will be my loss suppose if it surpasses 125 nd closes on 130 ?
Please familiarize yourself with option analytics tools like opstra… And prepare an option pnl calculator using Excel… for various scenarios using YouTube tutorials… That will put you in a better position to understand a-z about your positions…
I understood the concept in theory but when I buy or sell options in zerodha it directly starts showing pnl in red/green numbers in positions which confuses me