Hi traders i have a questions regarding Short-Selling stock options.
let me take a real example here.
I sold Unitech Put options of March- strike price of 85 is at 11.10.
My questions:
1) on the expiry day if the closing spot price is at 5 and cash market price is at 75 rs, will get the profit between the sold spot price(11.10) and buy spot price(5). If yes, yipeee :thumb:
2) If not, would NSE calculate the difference between Market cash price(75) and strike price(85) and give me the profit/loss
3) Now let say the spot price is at 13rs would NSE caculate the difference between Spot price(13) and the difference between Market cash price and strike price (85 - 75 = 10) and give me the profit/loss. Basically 13 - 10 = 3.
Really confuse.. kindly please advise.
let me take a real example here.
I sold Unitech Put options of March- strike price of 85 is at 11.10.
My questions:
1) on the expiry day if the closing spot price is at 5 and cash market price is at 75 rs, will get the profit between the sold spot price(11.10) and buy spot price(5). If yes, yipeee :thumb:
2) If not, would NSE calculate the difference between Market cash price(75) and strike price(85) and give me the profit/loss
3) Now let say the spot price is at 13rs would NSE caculate the difference between Spot price(13) and the difference between Market cash price and strike price (85 - 75 = 10) and give me the profit/loss. Basically 13 - 10 = 3.
Really confuse.. kindly please advise.