Key Terms in Options Trading
Before diving into strategies, let’s master some core concepts:
Underlying Asset: The stock/index/commodity on which the option is based.
Strike Price: The price at which the option can be exercised.
Expiration Date: The date on which the option contract ends.
Premium: The price paid by the option buyer to the seller (writer) for the contract.
In-the-Money (ITM): Option has intrinsic value (profitable if exercised).
At-the-Money (ATM): Underlying price = Strike price.
Out-of-the-Money (OTM): Option has no intrinsic value yet (not profitable to exercise).
Lot Size: Options are traded in lots (e.g., Nifty option has a fixed lot of 50 units).
Leverage: Options allow control of large positions with smaller capital.
How Options Work
Options are like insurance. Imagine you own a house worth ₹50 lakh and buy insurance. You pay a small premium so that if the house burns down, you can recover your value. Similarly:
A call option is like paying for the right to buy a stock cheaper later.
A put option is like insurance against stock prices falling.
Before diving into strategies, let’s master some core concepts:
Underlying Asset: The stock/index/commodity on which the option is based.
Strike Price: The price at which the option can be exercised.
Expiration Date: The date on which the option contract ends.
Premium: The price paid by the option buyer to the seller (writer) for the contract.
In-the-Money (ITM): Option has intrinsic value (profitable if exercised).
At-the-Money (ATM): Underlying price = Strike price.
Out-of-the-Money (OTM): Option has no intrinsic value yet (not profitable to exercise).
Lot Size: Options are traded in lots (e.g., Nifty option has a fixed lot of 50 units).
Leverage: Options allow control of large positions with smaller capital.
How Options Work
Options are like insurance. Imagine you own a house worth ₹50 lakh and buy insurance. You pay a small premium so that if the house burns down, you can recover your value. Similarly:
A call option is like paying for the right to buy a stock cheaper later.
A put option is like insurance against stock prices falling.
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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
相關出版品
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。