Introduction to Option Trading
Option trading is a derivative strategy where you trade contracts instead of actual stocks.
Two Main Types:
Call Option (CE) → Bullish view
Put Option (PE) → Bearish view
Example:
If you expect Nifty to go up → Buy Call
If you expect Nifty to fall → Buy Put
4. Key Concepts in Option Trading
🔹 Strike Price
The price at which you buy/sell the option.
🔹 Premium
The cost of buying an option.
🔹 Expiry
Options have a fixed expiry date (weekly/monthly).
🔹 Intrinsic Value & Time Value
Intrinsic = Real value
Time Value = Future expectation
Option trading is a derivative strategy where you trade contracts instead of actual stocks.
Two Main Types:
Call Option (CE) → Bullish view
Put Option (PE) → Bearish view
Example:
If you expect Nifty to go up → Buy Call
If you expect Nifty to fall → Buy Put
4. Key Concepts in Option Trading
🔹 Strike Price
The price at which you buy/sell the option.
🔹 Premium
The cost of buying an option.
🔹 Expiry
Options have a fixed expiry date (weekly/monthly).
🔹 Intrinsic Value & Time Value
Intrinsic = Real value
Time Value = Future expectation
Publications connexes
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Publications connexes
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.