Hi guys, this is my first post here. I have been reading a bit trying to gain knowledge on the markets.
Yesterday, I short sold a nifty jan 4700 call for rs 144.5 . I got about 7200 as premium. Can someone tell me when would I enter into a loss with this option depending upon the nifty movement. I just shorted 1 lot. Also, till what level of the nifty would I be in profit ( able to keep my premium ). Iam assuming i will be in no loss as long as nifty does not cross 4844.5 (4700 +144.5 premium ). Is that correct?
Also, is it possible that I can buy a call of the same nifty jan 4700 call ( its trading around 130 today) . Is it possible? In such a case, would I be in profit ( shorted at 144.5, bought at 130 ) or would my call buy and call short be treated as two separate entities?
Waiting for a reply to my query.
Regards,
Zahed
Yesterday, I short sold a nifty jan 4700 call for rs 144.5 . I got about 7200 as premium. Can someone tell me when would I enter into a loss with this option depending upon the nifty movement. I just shorted 1 lot. Also, till what level of the nifty would I be in profit ( able to keep my premium ). Iam assuming i will be in no loss as long as nifty does not cross 4844.5 (4700 +144.5 premium ). Is that correct?
Also, is it possible that I can buy a call of the same nifty jan 4700 call ( its trading around 130 today) . Is it possible? In such a case, would I be in profit ( shorted at 144.5, bought at 130 ) or would my call buy and call short be treated as two separate entities?
Waiting for a reply to my query.
Regards,
Zahed