I am newbie to options trading and find it a bit confusing.

**Scenario 1**: If I buy a 150 units of NIFTY 8700 call at 50 Rs and sell it on the same day at 60 Rs then what is the profit earned on this trade ?

**Scenario 2**: If I buy a 150 units of NIFTY 8700 call at 50 Rs and not sell it i.e. let it expire wherein Nifty trades at 8800 with premium price of 110 Rs. What is the profit earned on this trade ?

I dont know if the numbers are valid in the context of above scenario but i just want to know if profits booked on premium price or the index price ?

Your profits are always equal to (Sell price - Buy price).

In Scenario 1: Your sell price is 60 and buy price is 50, so the resulting profit is Rs.10 which translates to a gain of Rs.1500 for 2 lots of Nifty options.

In Scenario 2: You aren’t selling the option. You’re letting it expire. Since the option is expiring in-the-money, the sell price or the settlement price for such options is computed as (Spot price - Strike price). So here, the settlement price will be (8800-8700) = Rs.100. Since you’ve bought it at 50, you make a gain of Rs.50 which is essentially Rs.7500 for 2 lots.

On the expiry day, you have the option of selling the option before markets close in which case profit is computed as (Sell - Buy) or let it expire in which case profit is computed as above.

I suggest you go through the basics of Option modules: http://zerodha.com/varsity/module/option-theory/ to get better understanding.

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