Option Trading vs Stock Trading
Stocks = Ownership, long-term growth, dividends.
Options = Contracts, leverage, flexible strategies.
Stocks = Simpler, but capital-intensive.
Options = Complex, but require less capital and offer hedging.
For example:
Buying 100 shares of Reliance at ₹2500 = ₹2,50,000.
Buying 1 call option of Reliance at ₹100 premium with lot size 250 = only ₹25,000.
This leverage makes options attractive—but also riskier.
Real-Life Examples & Case Studies
Case 1: Bull Market
A trader buys Nifty 20000 Call at ₹200 premium. Nifty rallies to 20500. Profit = ₹300 (500 – 200). Huge return on a small premium.
Case 2: Bear Market
Investor holds TCS shares but fears a fall. Buys a protective put. When stock drops, put increases in value, reducing losses.
Case 3: Neutral Market
Trader sells an Iron Condor on Bank Nifty, betting price will stay range-bound. Premium collected = profit if market stays sideways.
Stocks = Ownership, long-term growth, dividends.
Options = Contracts, leverage, flexible strategies.
Stocks = Simpler, but capital-intensive.
Options = Complex, but require less capital and offer hedging.
For example:
Buying 100 shares of Reliance at ₹2500 = ₹2,50,000.
Buying 1 call option of Reliance at ₹100 premium with lot size 250 = only ₹25,000.
This leverage makes options attractive—but also riskier.
Real-Life Examples & Case Studies
Case 1: Bull Market
A trader buys Nifty 20000 Call at ₹200 premium. Nifty rallies to 20500. Profit = ₹300 (500 – 200). Huge return on a small premium.
Case 2: Bear Market
Investor holds TCS shares but fears a fall. Buys a protective put. When stock drops, put increases in value, reducing losses.
Case 3: Neutral Market
Trader sells an Iron Condor on Bank Nifty, betting price will stay range-bound. Premium collected = profit if market stays sideways.
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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
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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.