Divergence Secrets

Option Trading in India

India has seen a boom in retail options trading.

1. Exchanges

NSE (National Stock Exchange): Leader in index & stock options.

BSE (Bombay Stock Exchange): Smaller but growing.

2. Popular Underlyings

Nifty 50 Options (most liquid).

Bank Nifty Options (very volatile).

Stock Options (Infosys, Reliance, HDFC Bank, etc.).

3. SEBI Regulations

Compulsory margin requirements.

Weekly index expiries (Thursday).

Physical settlement of stock options at expiry.

Option trading is a double-edged sword. It can create wealth through leverage, hedging, and smart strategies. But it can also destroy capital if misused without understanding risks.

The secret is balance:

Learn the basics.

Practice with small positions.

Respect risk management.

Master volatility and Greeks.

If stocks are like playing cricket, options are like playing 3D chess—complex, dynamic, but highly rewarding for disciplined traders.