When we shot an option we receive a premium,lets say i received 4000 as a premium,now if i close the position at 2000 profit,will i get that 2000 only or full 4000?

General
2

You will get 2000 rs

3

SUNNAN,

You will be getting 2000 RS.

When you sell option, Premium will be credited to your account in your case it is 4000 rs. Now when you buy it back, when the value is 2000 RS . You have made a profit of 2000 RS.

A.Received/Credited = 4000 RS

B.Debited/Bought = 2000 RS

C.Profit / Loss = 2000 RS Profit.