Trading with Experts

What is Option Trading?
Option trading is a financial strategy where traders buy and sell options contracts — financial instruments that derive value from underlying assets like stocks or indices. Each option gives the buyer the right (not obligation) to buy (Call) or sell (Put) at a specified price before expiry.

🔹 Types of Options:

Call Option – Right to Buy

Put Option – Right to Sell

Index Options – Based on Nifty, Bank Nifty, etc.

Stock Options – Based on individual stocks (e.g., Reliance, HDFCBANK)

🔹 Key Components:

Strike Price – Agreed price to buy/sell

Premium – Price paid for the option

Expiry Date – Validity of the contract

Lot Size – Fixed quantity of shares per contract

ITM, ATM, OTM – In-the-money, At-the-money, Out-of-the-money

🔹 Why Trade Options?
✅ Leverage with less capital
✅ Hedging portfolio risk
✅ Strategic plays (Bullish, Bearish, Neutral)
✅ Income generation via selling options