PLEASE ANSWER THE FOLLOWING QUESTION
CALL OPTION
1) If I Think That A Particular Script Will Go Up , And I Buy A Call Option Of The Script, And If It Goes Up Then
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I Will Get Profit Is It Right ( Yes / No ) , But I Also Want To Know Whether The
A) Premium Will Increase
B) Premium + Strike Price Will Increase
C) Only Stick Price Will Increase
PUT OPTION
2) If I Think That A Particular Script Will Go DOWN , And I Buy A PUT Option Of The Script, And If It Goes DOWN Then
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I Will Get Profit Is It Right ( Yes / No ) , But I Also Want To Know Whether The
D) Premium Will Increase
E) Premium + Strike Price Will Increase
F) Only Stick Price Will Increase
I Have Heard ( In General ) That After 10th Of Every Month The Premium / Strike Price / Both Will Go Down Is It True
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You require more understanding of option basics.I have marked answers to yr Q in bold. The strike price never increases or decreases ,it remain same one you trade a contract with a particular strike price.
It is only the premium that increases or decreases.
Best Wishes,Learn well and trade well !!!!
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