Practical Examples
Example 1: Bullish Trade
Buy 1 call of Stock A at ₹100 strike, premium ₹5.
Stock rises to ₹120.
Profit = (120 – 100) – 5 = ₹15 per share.
Example 2: Bearish Trade
Buy 1 put of Stock B at ₹150 strike, premium ₹8.
Stock falls to ₹130.
Profit = (150 – 130) – 8 = ₹12 per share.
Example 3: Covered Call
Own Stock C at ₹200.
Sell call at ₹220, premium ₹5.
Stock rises to ₹230.
Profit = (220 – 200) + 5 = ₹25 (missed extra ₹10).
Protection against small drops due to premium received.
Advantages of Options
Limited risk for buyers
Leverage potential
Flexibility in strategy
Hedging capabilities
Profit from multiple market directions
Example 1: Bullish Trade
Buy 1 call of Stock A at ₹100 strike, premium ₹5.
Stock rises to ₹120.
Profit = (120 – 100) – 5 = ₹15 per share.
Example 2: Bearish Trade
Buy 1 put of Stock B at ₹150 strike, premium ₹8.
Stock falls to ₹130.
Profit = (150 – 130) – 8 = ₹12 per share.
Example 3: Covered Call
Own Stock C at ₹200.
Sell call at ₹220, premium ₹5.
Stock rises to ₹230.
Profit = (220 – 200) + 5 = ₹25 (missed extra ₹10).
Protection against small drops due to premium received.
Advantages of Options
Limited risk for buyers
Leverage potential
Flexibility in strategy
Hedging capabilities
Profit from multiple market directions
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.
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.