September 7, 2015

Option writing trade in SBI

Bought 2000 SBI around 226 (delivery) and wrote 2000 SEP 225 call around 12.

Will hold this till expiry.


If SBI closes at 300 this expiry:
1.I have to deliver the stocks I own (no profit no loss as purchase price and strike price is same)
2.I get to retain the premium (approx 5%).

If SBI closes below 225 this expiry:
1.I continue holding the stock (loss possible)
2.I get to retain the premium (approx 5%).


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