Part 2 Intraday Trading

Types of Options

There are two main types of options:

a. Call Option

A Call Option gives the holder the right to buy an asset at a specific price within a set time.

Traders buy call options when they expect the price of the asset to rise.

Example:
If a stock is trading at ₹100 and you buy a call option with a strike price of ₹110, you will profit if the stock rises above ₹110 before expiry.

b. Put Option

A Put Option gives the holder the right to sell an asset at a specific price within a set time.

Traders buy put options when they expect the price of the asset to fall.

Example:
If the stock is at ₹100 and you buy a put option with a strike price of ₹90, you will profit if the stock price falls below ₹90 before expiry.