Options doubt in monthly closing

[rkkarnani]

My calculations are based on the day of expiry and if nifty will close at 5200. That was the query of Jayamsuccess. Is the calculation right or wrong?

The calculation for Selling CE is wrong. When on the day of expiry the Nifty spot closes at say 5200 the 5750 Call sold at 110/- gives the seller Rs.110/- only, i.e. the premium he received when he sold the Call.
When you sell an Option your profit is limited to the amount of premium you receive on selling, but you loss is unlimited, and in case of Buying an Option, your loss is limited to the amount of premium paid and Profit is unlimited.

 

[ranj_2k]

Dear RK Karnani,
Thank you for clearing my confusion about calculation on option selling. I was of assumption that selling call is same as buying put.