Query on how to solve this Option Problem

@tushjain00

yours is so far perfect. Add another column settlement/expiry ( given in blue )…

1900 CE will expire worthless( 0.0Rs ) and 1840 PE will be settled for 93.25 Rs. Rest all fine and we are not including any brokerages here )

Great. just a clarification i need. I have calculated daily profit/loss keeping option premium on 3rd october as the base, i mean each day premium has been calculated by deducting premium as on 3rd october day of entering trade. is that correct, cause there is no daily settlement of options right?

Daily settlement will be there because writing an option brings you unlimited risk & limited profit.

Read my earlier posts, M2M settlement would be there on a daily basis.

Oh okay. but then how do i calculate gain/loss for a particular day

like on 3rd oct if put is worth 2 rs and on 4th it is 4 rs, profit for the day is 2 rs
now on 4th oct premium is 7 rs, so for that day profit would be compared with the base 3rd when option was bought or with the previous day? that is 7 -2 = rs 5 or 7-4 =3 rs

confused

M2M is calculated on daily basis settlement price.

If there is MTM on options , then it will be tallied with the previous days close. ( NSE dont have MTM for options but NASDAQ have MTM for options - googled )

For ex:
Assume an independent position with just a short/sell of 1900 CE. We sold 1900 CE for 48 on october 3rd.
On October 4th it closed at 43.25 Rs , lower than yesterdays close. Our account will be Credited 4.85 Rs ( 48Rs - 43.25 Rs).
On October 5th it closed at 46.4 Rs, higher than yesterdays close. So 3.15 Rs will be Debited ( 43.25 Rs - 46.4 Rs = 3.15 Rs ).

pft/loss for a particular day will be comapred with the previous day price.
I will make it even more simpler for you,

  1. october 3rd you bought a put for 2Rs and it closed it 2Rs ( MTM is zero )
  2. october 4th , put closed at 5Rs. MTM is 3Rs ( current close - previous day close … 5Rs - 2Rs = 3Rs )
  3. october 5th , put closed at 15Rs. MTM is 10Rs ( current close - previous day close … 15Rs - 5Rs = 10Rs )
  4. october 6th , put closed at 12Rs. MTM is -3Rs ( current close - previous day close … 12Rs - 15Rs = -3Rs )

@nithin is it true that there is no M2M on nse for options ? !!
No offense to anyone :smile: :rofl:

have you ever sold/bought options and carried it for the next day ? :joy::joy::joy:

answer this honestly plz … if yes , i can help you

Oh boy please leave me now!! :smile: Why are u so after me if I didn’t like your strategy for buying PUTS in bulk for hedging the position!!

If u have such a confidence then why not show us a strategy on the beginning of next month futures options contracts. Everyone will also learn from u but having a position open in options will get u into roller coaster rides & if a position goes into good loss would you still keep it alive paying up high m2m everyday. You yourself wont practically follow it when you will see your positions swinging in deep losses! And right strategy is where your position goes in your favour after entering into a trade. Here till more than 1 week the position was swinging in LOSS & would anyone still dare to keep it alive!!

Why are you getting personal , I really have no issues with anyone here including u. :smile: I m enjoying my stay. If u have anything personal with me then you can pvt message me or speak on phone or meet up. You will see me & get a fair idea of my trade size. I dont bluff. Why waste time getting into arguments with someone you have never known.

@Spaceship

i am full time option trader and these are my trades for this month :sunglasses:
i am not crapping here like you buddy …

you really dont know the ABCs of options and think that others guys are as dumb as you ?
keep exposing your stupidty to the whole world boy !!! :clap::clap::clap:

you will be really ashmaed one day when you go through this thread incase you learned a bit of options :rofl::rofl::rofl:
dude … how can you be so confident posting your stupid things here without thinking what you are posting ?

Enough !! Get a life. You seem to be really mad angry hell burnt with me like a mad boy shouting. :joy:
Keep crying … I m loving to see you burning hahaha :rofl:
Brainless kids getting madly offended by me.

He considers himself as a full time option trader & still checks on google to verify if M2M settlement happens daily in options.

:joy: :rofl:

I m done. A joker exposed himself repeatedly. I m literally laughing at a full time option trader who would waste n risk money buying PUTS. :smile: :joy: :joy_cat:
Keep trying , keep crying. I m loving it

really enjoyoing your ignorance boy :sweat_smile:
by this time if you have google atleast , you might have learnt something !!!

anyway you are Joker for everyone , you will soon realize , i will bookmark this for future reading and timepass …
ignorance is a bliss in your case though :clap:

Edit:
Just saw one your threads craeted 2 weeks ago.
Looks like you had not even written a single option so far .
Your confidence is mndboggling though :clap:

@nithin please help me. This person velmurugan is stalking me since evening. He’s posting screenshots now after I exposed him but hiding away his realized profits losses. :joy_cat:

I need no screenshots. I can sense dumb kids by their posts. I m a genius who can really make some loss making frustrated people real angry at me.

:joy: These people have no real life, no social life & keep on bluffing crap strategies even after proclaiming themselves as full time option traders. They don’t even know ABC of options ! They have to search Google to know if M2M settlement happens in options or not.

I m laughing literally. :smile: :joy: Joke of the century.

Hahahaaaa

only thing you exposed here is your stupidity :joy::joy::joy:
for real do some real trades and come back kid !!!
MTM on options in NSE … lol , even a kid knows this man

till then , we all enjoy your ignorance :clap:
looks like you will entertain everyone for a very long time like how you usually do in other threads :rofl::rofl::rofl:

Keep crying kid. :smile: I m enjoying to see u going mad after me. :blush:

Hahah keep showing your stupidity n ignorance to everyone. U r not worth 20,000 trading capital n posting fake screenshots hiding away losses. :joy:

Keep fooling yourself, do some photoshop or beg someone to give u better screenshots. :rofl:

you dont need anything more to show your ignorance and stupidty … :rofl::rofl::rofl:
keep entertainign us…

lol … you shoudl first learn to know the difference between different month contarcts and learn to use the NSE site properly…
have a nice sleep kid … you are irersitable , will see you tomorrow

Run run kid!! Keep crying n getting burnt. :joy_cat:
Kids like u born daily n die daily. :rofl:

When u fail to counter someone with logic, u get mad after people :joy_cat:

Keep entertaining us. :rofl:

I really cant argue using logic with anyone of your intelligence level :slight_smile: