I want to know that does i understand option trading correctly
Take example of Indusind bank at strike price on 400
1 Lot =1000 shares
I buy 1000 lot i.e 1000 lot = 1000000 shares
i buy at 0.10 i.e. premium = 100000
brokrage is 100 rs per lot i.e. = 100000rs
total cost = 100000(premium) + 100000(brokrage) = 200000 rs
i sell contract on 1.10 rs i.e. 1000000*1.10 = 1100000
profit = 1100000 - 200000(brokrage on both side) = 900000
if i dont sell because premium goes low then i will loose = 100000(premium) + 100000(brokrage) = 200000 rs
Please let me know that am i correct
