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Basics of Put Options – Payoff, Put Buyer Vs Writer

Deepika Khude

Call and Put Option are two sides of the same coin. They represent two opposite views on the same stock. A call option buyer expects the share price to increase. Quite naturally, a put option buyer will expect the share prices to decrease.  Majority of investors believe that the only way to make money in… Continue reading Basics of Put Options – Payoff, Put Buyer Vs Writer

What is Call Option and Put Option? – A Beginner’s Guide

Deepika Khude

Call option and Put option are the two main types of options available in the derivatives market. A Call option is used when you expect the prices to increase/rise. A Put option is used when you expect the prices to decrease/fall.  Warren Buffett has described derivatives as weapons of mass destruction. Options, a type of derivatives,… Continue reading What is Call Option and Put Option? – A Beginner’s Guide

What is Options Fair Value Calculator?

Chirag Joshi

Why is Options trading difficult? Most traders believe there are unlimited gains in options trading while losses are limited. But many traders lose money not being able to understand how options work. Bewildered by greed, traders keep buying options with the approach that they are similar to investments and keep on averaging with the hope… Continue reading What is Options Fair Value Calculator?

What is Implied Volatility or Option IV?

Nirali

Implied Volatility Definition Implied Volatility is the expected volatility in a stock or security or asset. In simple terms, its an estimate of expected movement in a particular stock or security or asset. The implied volatility is high when the expected volatility/movement is higher and vice versa. This expected volatility may be higher due to… Continue reading What is Implied Volatility or Option IV?

What is Put Call Ratio?

Chirag Joshi

Put Call Ratio Explained The Put Call Ratio is the number of Put Options traded in a period divided by the number of Call Options traded in a period. It is a popular tool to help investors gauge the overall sentiment of the market. Usually the trading volume is used to compute the Put-Call Ratio, several traders… Continue reading What is Put Call Ratio?

What are Nifty Options?

Nirali

Understanding Basic Options Before understanding Nifty options, first we need to understand what an option instrument is. Just like derivatives futures, options too is an derivative product where the buyer holds a right to execute option of either buying or selling of shares or another underlying at a certain pre-determined price (also known as the strike price) during… Continue reading What are Nifty Options?

Trading Index Options

Nirali

Index Options Explained Just like a derivative future contract, options too are an derivative product where the buyer holds a right to execute option of either buying or selling of an underlying asset at a certain pre-determined price (also known as the strike price) during a pre-determined time period. An Index option is a type of option where the underlying is an Index… Continue reading Trading Index Options

Trading Stock Options in India

Nirali

 Stock Options Definition A stock option is a type of option where the underlying asset is a stock. The other type of options defined based on the underlying are Index options. Before we discuss stock options in further detail, check information on Call options and Put options. They payoffs and risk-rewards applicable for stock options shall be the… Continue reading Trading Stock Options in India

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