5. Summarizing Call & Put Options

Рет қаралды 91,631

2 жыл бұрын

In the previous video, we looked at buy and selling a put option and how those trades would play out. In this video, we summarize all the 4 videos so far and look at when you buy or sell an option.
Check out this Varsity chapter to learn more about the buy and sell scenarios of call and put options: zerodha.com/varsity/chapter/s...

Пікірлер: 26

@rajarajancp742 2 жыл бұрын

Mr. Karthick is one of the best teachers i have come across. Many thanks to him

@pushkarnyayadhish3068 11 ай бұрын

Great Learning experience sir! Waiting for more such informative finance related videos . Thank You.

@navinjain7 Жыл бұрын

Best training available 👌

@ristondsouza8548 2 жыл бұрын

Awesome Sir! Thanks To Zerodha

@bagadbilla56 2 жыл бұрын

thank you so much

@user-xw8us6bj7o 5 ай бұрын

4:55 is where the spelling of premium is written as permium

@sanajusingh397 9 ай бұрын

What will hapoen at expiary if ivdid not square off put options sell ?

@foodies98 2 жыл бұрын

Nice

@geethakamalnath Жыл бұрын

If both buy call and sell put terms predicts uptrend then why option don’t use in single trrm

@versonnelofi 9 ай бұрын

Are all expiry dates on the last thursday of the month?

@chinubhaishah7673 Жыл бұрын

Good

@Traderstownn Жыл бұрын

♥️

@rajrathod1869 Жыл бұрын

Please make video on ATM, ITM, OTM

@varsitybyzerodha Жыл бұрын

Hey, we've explained this here: kzfaq.info/get/bejne/abBpfJOGnt2Yh6s.html

@HARENDRAKUMAR-st3nz Жыл бұрын

I need you to talk. the contract of sbin at rs. 460 you paid premium as Rs.17.50 and sold it at rs.19.80 so you made profit as rs.3450 but when you did this, sbin was at 463.25. till now everything okay but you said contract price as 460 + premium as 17.50, it is 477.50 afterthat if it increase then we get profits. but you got profit when sbin was at 463. I'm confused. sorry if I explain wrongly but I need answers

@Rohixx 11 ай бұрын

Strike Price: You bought a Call Option with a Strike Price of Rs. 460 for SBIN. Spot Price: The spot price of SBIN at the time of buying the Call Option was Rs. 458. Premium Paid: You paid a premium of Rs. 17.50 for the Call Option. Lot Size: The lot size is given as 1500 options. Total Cost: To calculate the total cost of the Call Option contract, you need to consider the lot size. The total cost would be the premium paid, multiplied by the lot size: Total Cost = Premium Paid * Lot Size = Rs. 17.50 * 1500 = Rs. 26,250 Selling Price: You sold the Call Option when it had a premium of Rs. 19.80. Profit Calculation: To calculate the profit, you need to consider the difference between the selling price and the total cost (premium paid) multiplied by the lot size: Profit = (Selling Price - Total Cost) * Lot Size = (Rs. 19.80 - Rs. 17.50) * 1500 = Rs. 2.30 * 1500 = Rs. 3,450 Explanation: The profit of Rs. 3,450 was earned because you sold the Call Option at a premium of Rs. 19.80, which was higher than the premium you initially paid (Rs. 17.50). The profit was realized even though the spot price of SBIN had increased to 463.25. The key concept here is that the value of the Call Option is not solely determined by the spot price of the underlying asset (SBIN). It also depends on factors like time to expiration, implied volatility, and market sentiment. As the spot price of SBIN increased, it likely influenced the premium of the Call Option to rise, leading to a higher selling price than the initial premium paid. They have not considered the factors above.

@hiteshyadav-iv8di 11 күн бұрын

sir do u know ramesh ji paanwala the great ? he said you can sell an option into a future to make it a debt backed equity trade on a past expiry? (he is a pro dosa maker) (and works in rameshwaran cafe)(since 1869)(he is dead now)(he came in my dreams and told this)(rameshwaram cafe started in 1997)""makes no sense right "" just like your videos. by the way he is also conquerer rank in pubg mobile. good to know fax