ilmscore | Prediction Details
"assume that you had bought a call option with a strike price of fifteen thousand how much is the premium paid assume 300 right so now let's understand what happens on expiry assume on expiry the market goes to 16,000. Has it gone in your favor? Yesss, are you going to execute the contract? Yess what will be the gross profit in this case it will be thousand rupees for those who have done futures and options or futures and options practically what will happen in this case is basically when the call buyer is going to square off the position, first he has bought ultimately he's going to sell while he bought the call he had paid the premium and when he is going to square off that is whenever he is going to sell the call option that is when he is going to receive the premium so basically this thousand rupees you can either call it as gross profit or you can also call it as a premium on sale of option okay so this is again something which is very crucial if you want you can just rewind and replay this part of the video how much was the premium paid as I mentioned it was 300 so now how much is the net profit or loss it is only rupees 700 absolute profit or loss again 700 now I want a correct answer how will the turnover be calculated the absolute profit or loss plus plus what premium received so it's going to be 700 plus thousand and in this case it's going to be 1700 rupees"
By CA Rachana Phadke Ranade | July 20, 2022 | Pending
From video
Tax Audit Applicability on F&O | CA Rachana Ranade 00:13:27 - 00:14:51
Interpreted Prediction
For a call buyer, the turnover is calculated as the absolute net profit/loss plus the premium received (which is the gross profit from squaring off). If there's a net profit of 700 (after paying 300 premium) and the gross profit from squaring off is 1000, the turnover is 700 (absolute profit) + 1000 (premium received on sale) = 1700.

Prediction Details

Topic
Turnover Calculation for Options (Call Buyer)

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