Asian markets enjoyed gains, but overnight selling in technology sectors caused the US stock indices to close lower.
The premium or price gathered from option purchasers represents the greatest gain for option sellers, but their losses are not limited.
The premium or price obtained from option purchasers reflects the greatest gain for option sellers, but their losses aren’t limited when the 18th Lok Sabha election results are expected to be declared, based on information from the National Stock Exchange. According to market observers, this demonstrates the amount of protection the sellers—who are subject to limitless risk—are building up in expectation of extreme swings that day.
Which is covered by the total price of the weekly call and put options contract with a 22500 strike expiration date of June 6 at Thursday closure, which is ₹865 per share (one contract is equal to 25 shares). In order to cover their risk in the event of significant price changes, option sellers have paid buyers of the 22500 call and put option—referred to as a straddle in the market—this fee, which equates to a total 7.7% range (22500-865 and 22500+865).
