If NAB is 34.50 at expiry then the 30 calls will be worth 4.50 at expiry.You'll have to buy them back or have them excercised.Not much profit in that.
You probably meant if NAB is 3000 at expiry.Then your profits are large.
Selling way out of the money puts or calls is not for the novice.
You MUST get the direction right as you generally are selling very little time premium (the option will sell for close to it's intrinsic value) and risk early excercise (not such a great risk for calls,however).Your only profit comes from getting a movement in the direction you want.
Given the much higher risk profile of selling options (and little time premium from this style of option) significantly out of the money options should only be bought.
My opinion only.
Disclaimer:Do you think if I actually KNEW the direction of any share, index or commodity I would bother writing to a free forum?
Crashy goes short NAB harder, page-8
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Last
$36.17 |
Change
0.170(0.47%) |
Mkt cap ! $112.1B | |||
| Open | High | Low | Value | Volume |
| $35.80 | $36.17 | $35.77 | $139.2M | 3.865M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 7786 | $36.07 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $36.18 | 17112 | 3 |
View Market Depth
| Last trade - 16.10pm 19/06/2024 (20 minute delay) ? |
| NAB (ASX) Chart |