I have doubt of stock options 😬, I seen the stock option of AARTIND NSE 31 MAR 22 440CE which is trading at 0.05rs it's 1 lot quantities is 850, if calculate 0.05 rs * 850 qty= 42.50rs,
if I buy it at 0.05rs, I have gone correct almost 400 points to current price 859 at 17/03/2022 for 440CE strike price which is expiry on 31st MAR 22,
If I hold that call options contract after expiry, I should settle it by physical delivery of shares, buy share at 440rs per shares of 850 qty it is total amount of 3,74,000rs, I should have in my trading account to settle that stock option,Then I get share at 440rs, let assume that after physical settlement of shares I sell all shares at 540rs I made profit of 100rs per share it is amount 85,000rs profit
My question is why someone selling 440CE options for only 0.05rs even if they hold they get guarantee profit if they manage to pay the settlement amount of that options of 3,74,000rs they get more than 80,000 profit
Please check on the upstox or any other platforms of 440CE of AARTIND 31st MAR expiry
Please anyone explain me what is the real truth?
