Calculating Option Prices

Let's say I purchase Nifty Call Option 6000 for Dec series at 40 Rs. Now it is trading at 20. There are 8 trading days more before expiry. At current levels, how do I calculate what level of Nifty (6030?) achieved tomorrow will make the premium higher than 40?



Staff member
You can use Black-Scholes model, but it isn't always accurate.

Option prices are market-driven.

Models can give you a rough idea about what the prices should be, but in the end, option prices are decided by the supply and demand in the market and not any model or formula.