. Introduction to Option Trading
Options are powerful derivative instruments that give buyers the right (not obligation) to buy or sell an underlying asset at a predetermined price within a specific time. They are commonly used for hedging, speculation, and income strategies.
There are two basic types:
Call Options: Right to buy
Put Options: Right to sell
Options derive value from stocks, indices (Nifty, Bank Nifty), commodities, or currencies and are traded on platforms like NSE in India.
2. Key Terminology in Option Trading
Strike Price: Price at which the option can be exercised
Premium: Cost of buying the option
Expiry: Last day the option is valid
Lot Size: Fixed number of underlying units (e.g., 50 for Nifty)
Intrinsic Value: Real value of an option if exercised now
Time Value: Portion of premium linked to time left before expiry
ATM/ITM/OTM: At The Money, In The Money, Out of The Money – defines moneyness of options
Options are powerful derivative instruments that give buyers the right (not obligation) to buy or sell an underlying asset at a predetermined price within a specific time. They are commonly used for hedging, speculation, and income strategies.
There are two basic types:
Call Options: Right to buy
Put Options: Right to sell
Options derive value from stocks, indices (Nifty, Bank Nifty), commodities, or currencies and are traded on platforms like NSE in India.
2. Key Terminology in Option Trading
Strike Price: Price at which the option can be exercised
Premium: Cost of buying the option
Expiry: Last day the option is valid
Lot Size: Fixed number of underlying units (e.g., 50 for Nifty)
Intrinsic Value: Real value of an option if exercised now
Time Value: Portion of premium linked to time left before expiry
ATM/ITM/OTM: At The Money, In The Money, Out of The Money – defines moneyness of options
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Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.