Consider Nifty Jun Options are trading at 10820. I buy 1 lot ( 75 contracts ) of Nifty Jun Call Options at strike price 10800 as “intraday trade”. The premium paid = Rs. 100 * 75= 7500. After some hours, the premium becomes Rs.120 per contract and Nifty is Trading at 10850. I sell my options (before 3:15) at 120*75 = 9000. Now, how my profit be calculated?

1. Profit = { (10850-10800) *75 } - 7500 = -3750 = 3750 Loss
i.e. Profit = { (Current price- Strike Price) * Lot Size} - Premium paid

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2. Profit = 9000 - 7500 = +2500 = 2500 Profit

Of course profit of Rs 2500.

Suggest you to go through the futures and options module on Varsity before trading F&O. Quite risky instruments to trade.

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sorry I am a bit late, but shouldnt the profit be 1500?

just for clarity as newbies like me are full of self doubts.

You are correct. It is 1500.

To be more clear, 1500 becomes gross profit and after removing other costs like brokerage, taxes (lets say 60 rs) , 1440 becomes your net profit.

can check the exact amount above

Gross Profit = Amount recd while selling - amount paid while buying

Net profit = Gross profit - other costs

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