1.If i purchased Nifty 2900 call at current price 170 ,shall i sell it if current price reaches 190,and can i take profit (190-170)*50(one lot).or
ANS=Yes if you sell at 190 you make 20 points and a gain of 20x50=1000
if i square off current nifty value*50 get as profit/loss?
2.Is i need to wait till nifty reaches 3000?
No you need not to wait till Nifty reaches 3000. You can square off anytime on or before expiry.
3.can i square off before expiry?
yes you can.
Since you are a new trader in Options I would advice you to understand the Options pricing. What all factors impact the options pricing. Mainly it is dependent on 3 things -
1) Difference between Strike price and spot value
2) Time remaining to expiry
3) Implied Volatility (IV)
In above 3 things 1 and 2 are very much clear but it takes ages for traders to understand the implied volality...sometimes spot value moves 50-60 rs but option value doesnt move even 10 rs and thats where this IV plays a vital role so please learn this.
Let me know if I can be of any help.
Add me in ur yahoo -
[email protected]
Cheers
Abhi