Hello,
I bought Bank Nifty option contract on 30/04/2019, 2 lots 29200 PE @ 4.90 expiring on 02/05/2019 for a total of Rs 196. This morning when market opened up. I see the P&L of over Rs 700 (I closed it later with a loss of Rs 725). Could you please explain the logic behind it. I took the said position with a pre-determined loss of Rs 196 (premium paid to buy 2 contract). I called up broker support team and they said it is the closing or settlement price at the EOD. I have not understood the working behind it. Could someone please explain? Thanks in Advance
I bought Bank Nifty option contract on 30/04/2019, 2 lots 29200 PE @ 4.90 expiring on 02/05/2019 for a total of Rs 196. This morning when market opened up. I see the P&L of over Rs 700 (I closed it later with a loss of Rs 725). Could you please explain the logic behind it. I took the said position with a pre-determined loss of Rs 196 (premium paid to buy 2 contract). I called up broker support team and they said it is the closing or settlement price at the EOD. I have not understood the working behind it. Could someone please explain? Thanks in Advance