Call Options & Put Options Explained
Options are of two types:
🔹 Call Option
Gives the right to buy an asset at a fixed price.
Buyers of call options are bullish (expect prices to rise).
👉 Example:
If Nifty is at 22,000 and you buy a 22,100 Call Option for ₹100 premium, you pay ₹100 × lot size (say 50) = ₹5,000.
If Nifty rises to 22,400, the 22,100 call is worth 300 points. Profit = (300 - 100) × 50 = ₹10,000.
If Nifty stays below 22,100, you lose only the premium ₹5,000.
🔹 Put Option
Gives the right to sell an asset at a fixed price.
Buyers of put options are bearish (expect prices to fall).
👉 Example:
If Bank Nifty is at 48,000 and you buy a 47,800 Put for ₹200 premium, lot size = 15.
If Bank Nifty falls to 47,000, option value = 800 points. Profit = (800 - 200) × 15 = ₹9,000.
If Bank Nifty stays above 47,800, you lose only premium = ₹3,000.
So:
Call = Bullish bet.
Put = Bearish bet.
Options are of two types:
🔹 Call Option
Gives the right to buy an asset at a fixed price.
Buyers of call options are bullish (expect prices to rise).
👉 Example:
If Nifty is at 22,000 and you buy a 22,100 Call Option for ₹100 premium, you pay ₹100 × lot size (say 50) = ₹5,000.
If Nifty rises to 22,400, the 22,100 call is worth 300 points. Profit = (300 - 100) × 50 = ₹10,000.
If Nifty stays below 22,100, you lose only the premium ₹5,000.
🔹 Put Option
Gives the right to sell an asset at a fixed price.
Buyers of put options are bearish (expect prices to fall).
👉 Example:
If Bank Nifty is at 48,000 and you buy a 47,800 Put for ₹200 premium, lot size = 15.
If Bank Nifty falls to 47,000, option value = 800 points. Profit = (800 - 200) × 15 = ₹9,000.
If Bank Nifty stays above 47,800, you lose only premium = ₹3,000.
So:
Call = Bullish bet.
Put = Bearish bet.
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Details:
Contact : +91 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.