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2 Answers

Options trading in Nifty.?

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I need a clarification to my doubt.
Suppose, I buy a 4400 Nifty PUT ( exp date Feb 25 ) today for Rs.18 , ( Say, tomorrow Nifty is at 4750 ). If I close the option open poistion for suppose Rs. 30 ( well before the expiry ) , Will I get the profit of
Rs(30 – 18 ) ? Or will I be at loss Since Nifty is not below 4400 when I close the contract.

2 Answers

  1. Priyangshu B on Apr 12, 2011 reply

    You will get profit (30-18).If you want to know more about option read this article i think it will help you. http://deepaacharya.blogspot.com/2010/02/know-about-options.html

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  2. uday on Apr 12, 2011 reply

    Yes you will earn [(30-18)*50] = 600/lot

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