4. Put Buy and Put Sell 

Whether it's buyer or break even price is always same for them Call buyer and seller: Strike price + premium Put buyer and seller: Strike price - premium Keep that it mind..thank you!

@@jackofoptiontrades You are incorrect here Call : Strike + premium Put : Strike - Premium

@@GratefulSoul-016 That was typing error! Thanks for rectifying!

Only below (strike price + Premium paid)..

Hi Keval, when you're buying a Call or shorting a Put or vise-versa, your view on the market direction is the same. However, when you buy options, your loss is limited to the premium paid and profits are unlimited. While, when you sell options, the loss is unlimited and profit is limited to the premium received. zerodha.com/varsity/chapter/summarizing-call-put-options/

​@@varsitybyzerodhapu

Reliance gives you the option of selling their shares for their higher price that’s how u can sell something u don’t own.

Its like making a deal with the broker that under your contract, you are responsible for the lots which were actually sold by brokers but initiated by you. If it makes sense and market moved downward, you can make money( by insisting the broker to exiting the position where the trader shorted the position and make available the lots of stock which were relatively ready to buy for the current traders at low price) Thank you

Sarkaar aapki marji ❤❤se aap salkt kar lijiye ko ❤😂😂😂🎉🎉🎉🎉🎉🎉🎉❤❤❤

Yes

Indeed

seller will also have 2487.5 because not getting profit or loss at 2487.5

@@ravijaiswal5867 for seller it should be 2632.50 .

@@gauravyadav6909 no.

Options are cash settled in india. So you will get the profit amount . So if its option call.. strike price is 100.. lot size is 1000.. and on expiry, spot price is 120.. the seller will pay you 20( 120-100) * 1000(lot size) ie 20000..

It does not get squared off. Since all contracts expire (unlike stocks), the contract will expire at the end of the expiry day. More here: zerodha.com/varsity/chapter/call-option-basics/

@@varsitybyzerodha can you please elaborate a more on this in detail. so in case our position is going upside down what we thought instead of selling or squaring off we just need to wait for it to expire?

Haha, you can only make money in Options by seller of these Options. Just like LIC. Statistically Option sellers make more money than buyers.

In options sellers have statistically 67% probability of making profit and buyer only has 33%.. call buyer makes profit if price goes up but will loose money if it stays flat or goes down.. opposite for put buyers.. out of 3 possibilities only one is in favour of buyer and 2 in favour of seller

seller gets it premium

Whether it's buyer or break even price is always same for them Call buyer and seller: Strike price + premium Put buyer and seller: Strike price + premium Keep that it mind..thank you!

Hi Gaurav, the buyer of the option has to buy the premium, and the seller has to sell the premium.

@@varsitybyzerodha Hi Sir, With respect to my understanding, For buyer, Break even point = 2560 -72.50 = 2487.50. For seller, Break even point , = 2560 + 72.50 = 2632. 50. Thansk. ❤️ Is this right sir?

@@varsitybyzerodha Thanks for valuable information.

is it CE or PE you are talking about? incase of CE if you paid premium and the underlying move as per your directional view, you can get the proft, also in order to reduce the risk of defaults from the option writer, the stock market asks them to pay margin, and you get money from that, also do note that in option market you are not creating money but you are taking from the seller or buyer, but in spot market you are creating money, if you don't understand it , ask me :)

​@@rinu7426 can you be more specific about creating money please?

@@yesaswininiveditha671 It's like in stock market.... If a buyer buys a stock at 100rs and sells it at 200rs, he gains 100rs and the second buyer who bought it at 200 rs, assume the stock raises and he sold at 300rs.......here the money is created, no one lost(as stock price increase on profitable businesses) thus both can profit. But in futures and options, The transaction is between two members and one guy's profit is another guy's loss.... Thats why derivatives are called zero sum game.

strike price - premium for both

FOR SELLER & BUYER 2632.60