Part 7 Trading Master Class With Experts

Options vs. Futures vs. Stocks

Stocks: Simple ownership.

Futures: Obligation to buy/sell at a future date.

Options: Rights without obligation.

Options are less risky than futures (for buyers) but more complex.

Real-World Examples

Example 1: You buy Nifty 20,000 Call at ₹100 premium. Lot size = 50.

Cost = ₹5,000.

If Nifty rises to 20,200, your profit = ₹10,000 - ₹5,000 = ₹5,000.

If Nifty stays below 20,000, you lose only premium = ₹5,000.

Psychology & Risk Management

Options are not just math, they need psychology:

Don’t over-leverage.

Accept losses early.

Use stop-loss.

Stick to defined strategies.

Manage emotions of greed and fear.