Options Trading strategies in India By Money Maker Research
Hello Trader's and Investor's!!
I am Kinjal Sanghvi, Today I will discus with you on Options Trading Strategies. For entering in Option Trading a Beginner should know what an “OPTIONS” are and how they work. There are two types of Options. So here i am gonna make you understand what is CALL Options and PUT Options.
1. A Call : A Call, which gives the holder the privilege to purchase the Option.
2. A PUT : A Put, which gives its holder the privilege to offer the Option.
Buying a Call Options, Options Trading Strategy : Money Maker Research
Buying a “Long Call” trade or making a Call Option is a simple strategy for taking advantage of upside move or trends. A long call trade is regularly the main choice procedure utilized by financial specialists once they choose to wander into Option Trading.
A call option gives you the right, but not the obligation, to buy the stock (or “call” it away from its owner) at the option’s strike price for a set period of time (until your options will expire and are no longer valid).
Buying a Put Options, Options Trading Strategy : Money Maker Research
Investors want to catch benefits on the down side, numerous individuals additionally utilize this system for fences on stocks they officially own on the off chance that they expect some fleeting drawback in the shares.
When you purchase a put option, it gives you the right (but, not the obligation) to sell (or “put” to someone else) a stock at the specified price for a set time period (when your options will expire and no longer be valid).
Covered Calls By Money Maker Research :
In a covered call (also called as buy-write), you hold a long position in an underlying asset and sell a call against that underlying asset. Your market opinion would be neutral to bullish on the underlying asset. On the risk vs. reward front, your maximum profit is limited and your maximum loss is substantial.
If volatility increases, it has a negative effect, and if it decreases, it has a positive effect. When the underlying moves against you, the short calls offset some of your loss. Traders often will use this strategy in an attempt to match overall market returns with reduced volatility.
Who are the Participants in the Option Trading:
1. Buyers of calls
2. Sellers of calls
3. Buyers of puts
4. Sellers of puts
Individuals who BUY Options are called holders and the individuals who SELL Options are called Writers ; besides, Buyers are said to have long positions, and Seller are said to have short positions.
I am Kinjal Sanghvi, Today I will discus with you on Options Trading Strategies. For entering in Option Trading a Beginner should know what an “OPTIONS” are and how they work. There are two types of Options. So here i am gonna make you understand what is CALL Options and PUT Options.
1. A Call : A Call, which gives the holder the privilege to purchase the Option.
2. A PUT : A Put, which gives its holder the privilege to offer the Option.
Buying a Call Options, Options Trading Strategy : Money Maker Research
Buying a “Long Call” trade or making a Call Option is a simple strategy for taking advantage of upside move or trends. A long call trade is regularly the main choice procedure utilized by financial specialists once they choose to wander into Option Trading.
A call option gives you the right, but not the obligation, to buy the stock (or “call” it away from its owner) at the option’s strike price for a set period of time (until your options will expire and are no longer valid).
Buying a Put Options, Options Trading Strategy : Money Maker Research
Investors want to catch benefits on the down side, numerous individuals additionally utilize this system for fences on stocks they officially own on the off chance that they expect some fleeting drawback in the shares.
When you purchase a put option, it gives you the right (but, not the obligation) to sell (or “put” to someone else) a stock at the specified price for a set time period (when your options will expire and no longer be valid).
Covered Calls By Money Maker Research :
In a covered call (also called as buy-write), you hold a long position in an underlying asset and sell a call against that underlying asset. Your market opinion would be neutral to bullish on the underlying asset. On the risk vs. reward front, your maximum profit is limited and your maximum loss is substantial.
If volatility increases, it has a negative effect, and if it decreases, it has a positive effect. When the underlying moves against you, the short calls offset some of your loss. Traders often will use this strategy in an attempt to match overall market returns with reduced volatility.
Who are the Participants in the Option Trading:
1. Buyers of calls
2. Sellers of calls
3. Buyers of puts
4. Sellers of puts
Individuals who BUY Options are called holders and the individuals who SELL Options are called Writers ; besides, Buyers are said to have long positions, and Seller are said to have short positions.
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