Possible results of Shorting Put


#1

Today 01 Feb 2019 is a fresh day & Nifty is @10900+ at this moment.

Example - Now If I short 1 Lot of Nifty 10400 Put at say a premium of Rs. 38 (All are roughly actual No of this moment) then what are the possible scenarios & Profit & Loss variation by the exp of Feb Series.

  1. Nifty < 10362
  2. Nifty = 10362
  3. Nifty = 10400
  4. Nifty = 10438
  5. Nifty = 10438 - 10900
  6. Nifty = 10900+

Please add if any condition is missing.


#2
  1. (Nifty)*75+Standard Costs
  2. 0
  3. 38*75
  4. 38*75
  5. 10438-10900 = -462 (Not gonna happen :confused: )
  6. 38*75

#3

Thanks Sai
But some clarity needed.

  1. Its (10362 - Nifty) 75 OR Nifty * 75* (By Std Cost U mean brokerage & taxes etc)
  2. All other cases it will be a profit of 38 * 75

(I understand Nifty may not move from 10400 to 10900 in a day or week - but theoretically its same)


#4
  1. As its on sell side you don’t incur charges and Yes its (Nifty-10362)*75 net loss
    2.In second case you don’t get profit, its break even at 0

#5

Possible Profit & Loss Scenarios.