Query regarding option premium

If I write an option for e.g. of nifty at a strike price of 15200. The option calculator shows i’ll get a premium of around rs 19000. Now if the strike price rises to rs. 15400 & I feel that I shouldn’t be in the position anymore & want to exit. Is the premium of 19k before expiry of the contract still with me or is there a different calculation for it?

When you exit your position, the difference between the price at which you shorted the option at and square-off your position at will be your P&L.

Eg. You took short possession in 15200 CE at 100, and square-off at 200 then you’ll be making loss of 100 * Lot Size.

Similarly, you took short possession in 15200 CE at 100, and square-off at 50 then you’ll be making profit of 50 * Lot Size.

For thorough information on Options, would suggest you read this module on Varsity;

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