Hi All,
I recently bought 2 lots of call option of Tech Mahindra 1320 for 42 with Expiry on Sep 26th.
It is currently trading at 30-40 region in Options Market.
In cash market, stock trades at 1328 now.
on Sep 26th if Options is trading at 35 & in Cash Market stock is trading 1340.
How is my profit / loss is calculated ?
Is it 500 x (42-35) = 3500 (Loss)
or say stock is trading at 1340 on 26th
(1340 - 1320 ) * 500 = 10000 (Profit)
or say stock is trading at 1300 on 26th
(1300 - 1320) * 500 = -10000 (Loss)
Can be completely stupid question, But I am totally new to this segment.
Request for help from Senior Boarders.
I recently bought 2 lots of call option of Tech Mahindra 1320 for 42 with Expiry on Sep 26th.
It is currently trading at 30-40 region in Options Market.
In cash market, stock trades at 1328 now.
on Sep 26th if Options is trading at 35 & in Cash Market stock is trading 1340.
How is my profit / loss is calculated ?
Is it 500 x (42-35) = 3500 (Loss)
or say stock is trading at 1340 on 26th
(1340 - 1320 ) * 500 = 10000 (Profit)
or say stock is trading at 1300 on 26th
(1300 - 1320) * 500 = -10000 (Loss)
Can be completely stupid question, But I am totally new to this segment.
Request for help from Senior Boarders.