Category Archives: Option Trading

Calculation of profits and losses in options

While it comes to calculation, there are 2 things we have to learn – how to calculate the break even point of an option and how profits/losses are calculate. Calculation of break even explained in our next article. Let’s go with an example, nifty to understand better how profits and losses are calculated in options …

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calculation of break even point in nifty options

Break even point is the zone where the investment is sealed without profit or loss. In simple, while investing, traders make sure that they don’t get losses once if the scrip reaches their estimated price. Lesser the investment, quicker the break even point for same break even point in call put option. Calculation of break …

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Nifty Call Put

Nifty options are classified into two categories Nifty call Option (Nifty call/Nifty CE) Nifty put Option (Nifty put/Nifty PE) Nifty Call Option: Nifty call rises when nifty index rise and the price declines when index falls. Nifty call is denoted as Nifty CE in trading terminals. In nifty call put options too, the loss is …

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Call Put Option

Call Put Option is otherwise known as derivative options. Every derivative option consists of a CALL (CE/CA) and PUT (PE/PA). These options are of two types based on their exercise. The first one is from Europe and often called an European Options and the second being American options. Basic difference between both these is the …

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Call Option

Call option gives the trader the right to buy the option of an underlying security from the writer for certain number of fixed shares (as per the lot size) at certain price of an expiry contract. CE option is available for all the stock which are available in future contracts. These are classified in to …

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Put Option

Put option gives the trader the right to sell the option of an underlying security to the writer for certain number of fixed shares (as per the lot size) at certain price of an expiry contract. As call option, this too available for all the stock which are available in future contracts. Also, Put options …

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Call Put

Call put is used to refer an option. Options trading is classified in index (nifty index) and stocks. Options strategy for index, particularly nifty is different from that of the other. Traders need to take care while choosing the analyst for options trading. There are some websites best known for index options trading where as …

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What is strike price

Strike price is another important term used in options trading. It is the price at which the option can be exercised. In simple, it is the betting or expectation price where you think markets may go up to. Let us take nifty call put for better understanding. For instance, if nifty is trading at 5480 …

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what is premium price

Premium price is nothing but the options current market price value. Once again, not to be confused with strike price which is just the betted/predicted/expected figure to which the stock may reach in the near future. Premium price is made up of two values – Intrinsic value and time value. Intrinsic Value + Time Value …

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nifty options tips

Nifty Options Tips are the used to trade in nifty call put. In Indian share market, these kind of tips are provided by many websites, each with their own unique features. However, many of these websites are proved to be fraud in nature. There are also certain websites like consumers-complaints.com, consumercomplaints.in etc. Website which provides …

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