Evening Gentlemen and of-course Ladies,
The thread caption is my question – How do we calculate PnL (Profit and loss) in options trading?
Can some experts shed light as to how this works? Where would be the break even?
I will cite an example
- - Selling SBI 240 CE @ 6.7
- - Quantity 2000
- - CMP 238.9
- -Span : Rs: 53,300
- -Exposure margin : Rs: 23,865
- -Premium receivable : Rs: 15,300
- -Total margin : Rs: 77,165
* Considering flat brokerage of 40 rupees for buy and sell
* Lets leave STT & other taxes out of the equation
* Lets say its a bearish market? What would be my profit and loss if option premium moves to 0.5 , 1, 2, 3, 4, 5, 6. Breakeven point?
Have tried understanding this concept but not able to find the pulse as to where should I be cutting the trade if things go wrong - In other words how can I effectly calculate my losses and profits.
Any contribution to understand this subject would be highly appreciated ~ Thanks
From: Vik M
at 04:02 PM - Dec 07, 2015( )
I have seen some masters over here to call out some names Durai/Deepak are the ones whose thread I came across