3. Long Call Payoff and Short Call Trade

Рет қаралды 140,541

2 жыл бұрын

In the previous video we discussed the various terms that are associated with options like premium, expiry, settlement etc. Karthik explained all these terms with a test trade-he bought the SBI 460 Call. In this video, we use the same trade and look at the various scenarios of how this trade will make money and lose money. We also look at how to calculate the P&L when you take an option trade by looking at the payoff chart, which is a visualization of the price points where you make or lose money.
Explore the buying call and selling call option chapters on varsity to diver Deeper: zerodha.com/varsity/module/op...

Пікірлер: 39

@varsitybyzerodha 2 жыл бұрын

Apologies, there's a small typo in the animation. The P&L on the payoff table should be a profit of Rs.17.5 at 6:25 mins, and not a loss of Rs.17.5.

@gauravpratap7 25 күн бұрын

no problem, we got it.

@Biochemistrybasics Жыл бұрын

Thanks for making such informative and insightful videos.

@nishantbarnwal107 3 ай бұрын

Very nice video. Many doubts are clear. Keep up the good work

@mathseducation6210 2 жыл бұрын

Sir your information is very useful.

@Bindaazzedits Жыл бұрын

It's a gold in KZfaq..Thanks Zerodha Varsity team

@shrixyz 2 жыл бұрын

Please explain T+0 line on the pay off chsrt

@abdulwaseed Жыл бұрын

6:95 Strike Price 495 profit -17.5

@ashishsingh1773 Жыл бұрын

Payoff chart of long call option at price 495 is wrong, it should be positive.

@ABHISHEKKUMAR-qy9ie Жыл бұрын

Who sells to the buyer of call options and how do they face loss

@MdFaizan-dn9ll 2 жыл бұрын

Sir can we sell call before the expiry date

@HarbhajansinghChawlaChawla 13 күн бұрын

Sir good evening your self dicijan ok❤ ji rahe aap ke raj me tanhaiyo ke sath ❤😂🎉🎉🎉🎉🎉🎉🎉🎉🎉❤😂

@mathseducation6210 2 жыл бұрын

Sir rojana video daliye taki sabhi concept zaldi seekh kar zerodha par account open kar trading kar sake.

@varsitybyzerodha 2 жыл бұрын

We will look into your feedback :)

@SNK2004NIO 13 күн бұрын

How they fix a premium for the share?

@rangnathnaik1980 Жыл бұрын

We need to pay premium till the expiry or only one time?

@indirapriyadharsini7288 Жыл бұрын

Is premium and tick price is same?

@VishalKumar-nu9zk Ай бұрын

Can I sell my call option shares before expiry?

@chahatsinngh4657 Жыл бұрын

Let me answer the same question @Radhe agrwal at 495 why I loose -17.5

@SouravDas-dh5mc Жыл бұрын

At the possible expiry @495 shouldn't the P&L be +17.5 instead of -17.5 ? Can you kindly explain sir

@vishnup5283 Жыл бұрын

I think its a mistake

@dkaushik68 Жыл бұрын

could not understand the IV in Key takeways. What is it and how it is calculated? What is the importance of IV Value? Pls explain.

@varsitybyzerodha Жыл бұрын

Hey Kaushik, we've explained this here: zerodha.com/varsity/chapter/volatility-applications/

@marcomarcel9360 Жыл бұрын

When i buy a stock option if it goes negative it shows red -500 or -300 why is that happening if premium is all gone in bear market

@varsitybyzerodha Жыл бұрын

Hi, could you please create a ticket on support.zerodha.com, so we can have this checked and clarified for you?

@MdFaizan-dn9ll 2 жыл бұрын

Sir can we sell before the expiry date

@rinu7426 2 жыл бұрын

yes you can

@Akashsahadotin 2 жыл бұрын

this whole thing is only at the expire position, right????

@priyadarshirajan 2 жыл бұрын

Yes, that's correct.

@akhilseth9079 2 жыл бұрын

Can’t access the next 2 videos, they are hidden

@varsitybyzerodha 2 жыл бұрын

We will publish them in the coming weeks, stay tuned.

@Yadhukrishnan-pu7uf 11 ай бұрын

Won't multiply this net profit with the total quantity

@tejasnarvekar1490 Жыл бұрын

Sir kya aap hindi mi bhi blog samja sakhte ho kya?

@varsitybyzerodha Жыл бұрын

Hey Tejas, we'll evaluate the possibilities, thank you.

@caitools4865 Жыл бұрын

Sir, why does the seller risk only making a profit of Rs 17.5 against an infinite loss? Can you or some one practically explain this to a novice like me? And who are the sellers in the real world?

@varsitybyzerodha Жыл бұрын

Hi, you can refer to this module on Varsity. You can drop in your questions on the comments section: zerodha.com/varsity/module/option-theory/

@YouTubeFunViewer Жыл бұрын

You mentioned loss is only 17.50 at the video 3:35 . But isn't the loss Premium x Lot size 1500 ? So the loss to the buyer is not just 17.50. it should be 17.50 x 1500

@varsitybyzerodha Жыл бұрын

This was just an example :) It is the loss multiplied by the lot size.

@Unknown-gr9hl Жыл бұрын

I think loss will be more than 26k (1500 x 17.5 ). It won't be just premium amount, could be to do with actual amount. Zerodha team plz clarify. Options are very risky trade anyway. So best if we understand fully before investing