I have new to options and till date only traded in futures.
I am only interested in trading "Nifty Options".
Eg: If currently nifty (Spot)is at 5940, and the CE(call)6000 is at 54.....
Does it mean 6000+54 = 6054, hence i can only make profit when the spot nifty exceeds 6054?
Eg: If currently nifty (Spot)is at 5940, and the PE(put)5900 is at 80...
Does it mean 5900-80 = 5820, hence i can only make profit when the spot nifty goes below 5820?
Have i understood properly?
Next, if at a premium of 80 I short 1Lot, hence 80x50 = 4000. So will my trading account will be deducted 4000rs. only? and if dont buy back my total loss will be 4000, am i getting it right?
PS: I am only interested in intraday trades.
OFFTOPIC: I have this question of which i am not getting proper reply, you may wana help their as well.
http://www.traderji.com/technical-analysis/47437-iip-gdp-etc-when-gets-published.html#post494640
I am only interested in trading "Nifty Options".
Eg: If currently nifty (Spot)is at 5940, and the CE(call)6000 is at 54.....
Does it mean 6000+54 = 6054, hence i can only make profit when the spot nifty exceeds 6054?
Eg: If currently nifty (Spot)is at 5940, and the PE(put)5900 is at 80...
Does it mean 5900-80 = 5820, hence i can only make profit when the spot nifty goes below 5820?
Have i understood properly?
Next, if at a premium of 80 I short 1Lot, hence 80x50 = 4000. So will my trading account will be deducted 4000rs. only? and if dont buy back my total loss will be 4000, am i getting it right?
PS: I am only interested in intraday trades.
OFFTOPIC: I have this question of which i am not getting proper reply, you may wana help their as well.
http://www.traderji.com/technical-analysis/47437-iip-gdp-etc-when-gets-published.html#post494640