While it comes to calculation,
there is thing we have to learn how to calculate profits/losses are
calculate.
Let’s go with an
example, nifty to understand better how profits and
losses are calculated in options trading.
The lot size of nifty is 50 shares in number irrespective of call or put. The profit/loss does not depend on the
type of call (nifty call option or nifty put option), expiry or strike. It directly depends
only on premium which trader selects while purchasing the
option.