i m new to option trading. i hv a query may be a silly one but i hope members at TJ will answer me.
suppose i hd bought November nifty 5000 put 1lot @ 7.00 (nifty was at 5120 at the time of buying) but market moves up and my value of put comes down to 5.00. since it is a long put it will continue to move down due to time decay if market remains above.
my question is if due to time decay my put value is suppose 1.00 on the expiry day but it strikes the 5000 level, i will gain or loose?
suppose i hd bought November nifty 5000 put 1lot @ 7.00 (nifty was at 5120 at the time of buying) but market moves up and my value of put comes down to 5.00. since it is a long put it will continue to move down due to time decay if market remains above.
my question is if due to time decay my put value is suppose 1.00 on the expiry day but it strikes the 5000 level, i will gain or loose?