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Shyam Metalics and Energy Limited IPO Detail, GMP, Key Dates etc

  Introduction : Incorporated in 2002 Metal Producer co, Such as  iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys Largest producers of ferro alloys in terms of installed capacity 4 th  player in the sponge iron industry.        Client List :      Jindal Stainless Limited, Rimjhim Ispat Limit are some of its domestic clients whereas Norecom DMCC, Norecom Limited, POSCO International Corporation, World Metals & Alloys, Traxys North America LLC, JM GLobal Resources, Vijayshri Steel Pvt Ltd, etc. are the international clients. Manufacturing plants  : located in Sambalpur in Odisha, Jamuria and Mangalpur in West Bengal.   Capacity to increase from 5.71 MTPA to 11.60  M TPA by 2025 Shyam Metalics and Energy Key Dates :   Date          :14-6-2021 To 16-6-2021   Fresh Issue    : Rs. 657 Cr.   OFS                : Rs. 252 Cr.   Total Issue Size   : Rs. 909 Cr.   Price Band     : 303 to 306   (Employee Discount

SIMPLE PAY OFF OF CALL AND PUT OPTION.....

WHAT IS PAY OFF FOR CALL OPTION AND PUT OPTION:

Example: Nifty is expiry at 15000

pay off for call option of 14800 and put option of 15200 will be as under.

Call payoff= Current price - Strike price

15000-14800 = 200 is intrinsic value of option.

Put payoff= strike price - current price 

15200- 15000 = 200 is intrinsic value of put option.

In call option below current price will be having intrinsic value and considered In the Money on expiry 

while,

Put option above current price will be having intrinsic value on expiry and considered as In the Money option.

On expiry day Options hold only Intrinsic value in ITM, while OTM option has some time value. so, clear concept of ITM, ATM & OTM before doing trade in options.

ITM option is having big part of Intrinsic value while ATM option hold more of TIME value and OTM option hold only TIME value.

Example : 

Nifty at trading at 14950

Nifty 15000 CE : 150 Rs Premium is consider only Time value and Strike is near to Current price so it is At The Money option.

Nifty 14700 CE : 280 Rs premium is having Intrinsic value of (14950-14700 = 250 Rs. ) + Time value of 30 Rs. is consider In The Money option.

Nifty 15200 CE : 40 Rs Premium is far from current Price is Out The Money Option holding only TIME value.
 
Exercise: 
Consider payoff of call option 
Nifty trading at 15100
Call option 14800
call option 15900
call option 15050

For put option nifty at 15100
Put option 14900
Put option 15450
Put option 15100

Do exercise to make concept clear. Comment below if you have any query and problem.

Mail at richideas100@gmail.com





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