i have a problem in understanding the options
lets say i buy 1 lot of unitech put options with a strike price of 75 at 0.8
and now if put moves to 1 so if i sell my lot or exercise my put options do i need to take 1 lot as a delivery or i will earn a profit of 0.2 on 1 lot
= 4000 * 0.2 = 800 ?
i am confused
lets say put option strike price is arrived and unitech reaches 70 rs
what will happen to the put call of 75 if i dont sell my option ?
because if the stock is volatile it can go down quickly
in that case what will happen please explain!
lets say i buy 1 lot of unitech put options with a strike price of 75 at 0.8
and now if put moves to 1 so if i sell my lot or exercise my put options do i need to take 1 lot as a delivery or i will earn a profit of 0.2 on 1 lot
= 4000 * 0.2 = 800 ?
i am confused
lets say put option strike price is arrived and unitech reaches 70 rs
what will happen to the put call of 75 if i dont sell my option ?
because if the stock is volatile it can go down quickly
in that case what will happen please explain!