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
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 guide as I have more questions Thanks