Is it same as short selling stocks?
I had been thinking last month to short sell Apollo tyres 100 call @ 0.85 and buy back towards expiry @0.10. This is risk free to me as i was sure apollotyres won't go beyond 90rs, could have easily made a profit of Rs.2500. I always have these kind of ideas but i was unsure as to how options work. I remember reading somewher that you will have to buy back from the same person to whom you have sold the option. Is this true? Plz correct me.
I had been thinking last month to short sell Apollo tyres 100 call @ 0.85 and buy back towards expiry @0.10. This is risk free to me as i was sure apollotyres won't go beyond 90rs, could have easily made a profit of Rs.2500. I always have these kind of ideas but i was unsure as to how options work. I remember reading somewher that you will have to buy back from the same person to whom you have sold the option. Is this true? Plz correct me.