swagat86 said:
hi Agilent, i said selling a call and a put simultaneously, right? this means im supposed to get premium right? second of all dont 4get that ur selling 2 calls, which will imply double premium. but profits would be sure shot. im still not very clear on what vincesaid "Since being intraday trades you would have to square up at the end of the day and buy back the short options if not exercised which they rarely are.(Give back the Premium). im still a novice do hlp me. and make hing clear. pls.
Swagat
Listen , it will make things more clear for all of us if you give a concrete example with mock trades, costs, sale proceeds, profits etc . Take today's opening and closing rates as the guide, and use the most liquid counter e.g. TiSCO or SBI
So let's get it : u go long AND short simultaneously in say 675 TISCO (to tally with minimum trading lot for the options) at today's opening 555. You square off both positions at today's closing of 517 (Marginal Net Loss of ... ?)
U also sell an ATM (July 560 strilke) call and a put each and pocket premia totalling Rs 45 (approx) and square off each at EOD (total outlay Rs 68 ?)
Can u pl work out yr profit or loss, and share yr working with all of us ?.
Mind u , factor in the brokerage AND do take cognizance of the bid /offer spreads in each quote
Eager to hear from u
AGILENT