P&L Calculation in Intraday Options Trading

F&O
1

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

                                                      **OR**

  2. Profit = 9000 - 7500 = +2500 = 2500 Profit
    i.e. Profit = Total Sell premium - Total Buy Premium

Please clear my doubts. Thanks.

2

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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3

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

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

4

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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