Part 1 Candle Stick Pattern

Real-Life Example

Suppose you expect Reliance Industries stock to rise from ₹2,500 to ₹2,600 next month.
You buy a Call Option with a strike price of ₹2,500 for a premium of ₹50.

If Reliance reaches ₹2,600 → Profit = ₹100 - ₹50 = ₹50 per share

If Reliance stays below ₹2,500 → You lose only ₹50 premium

Thus, your risk is limited, but your reward can be significant.