In this blog post we will be understanding what is all about short call Option.
Let us suppose if Nifty is trading 21750 points. Now, if I say it will decrease or fall below of 21750, then I will win. It is more like bet where you are betting on the chance of decrease in the Nifty Points. To exercise this one will receive the Premium of Option as the option is being sold. So, Here if the trend is with you you will get the premium as well as if it is against the trend then also it will protect till the value of premium is not overseeded.
Here , Seller will Receive the Premium of Rs 342 which means seller is protected in Nifty till 21750 +342 = 22092 in Nifty. So, here Seller gets huge saftey if goes against the trend and protected till 22092. If say Nifty Expires at 22000 then also Seller makes the profit of Rs 92X50 = Rs 4600. So, be this way Seller Makes Profit even tough trend is against the Seller also. Sellere makes Full Profit if Nifty expires at or below 21750 points.
Let us understand through the video