Options Trading Strategies, Option Trading Tips, What is


Well, both these instruments are very different. Remember, a buy call and a sell call works differently and has different pay off features. This versatility is not there in futures.

Options Basics Tutorial - Investopedia

Cash dividends issued by stocks have big impact on their option prices. This is because the underlying stock price is expected to drop by the dividend amount on the ex-dividend date.. [Read on.]

Options Trading Explained - Free Online Guide to Trading

Trading stocks. You hear that phrase all the time, although it really is wrong – you don’t trade stocks like baseball cards (I’ll trade you 655 IBMs for 655 Intels).

What is a Call Option? Explanations of Calls and Puts Trading

Nowadays, many investors' portfolios include investments such as mutual funds , stocks and bonds. But the variety of securities you have at your disposal does not end there. Another type of security, known as options , presents a world of opportunity to sophisticated investors who understand both the practical uses and inherent risks associated with this asset class.

hi sir
like futures, here in the options trading whether the buyer of the call option can exercise the option and exit before the expiry and book profits by selling shares in spot market OR have to wait till expiry. please clarify this doubt sir

Hi, i am new to option. read your documents and able to understand a bit in my way. I little bit understood the concept but i do not know how to implement like say my prediction for the next week is that Buy at 8579 tgt 8668 and if short then short at 8579 with the target of 8996 now who me to place this in the option what to choose in CE and PE
Need you support Mr. Karthik Rangappa

Sir, in order to escape significant time decay, I wish to buy options whose expiry is 95 to 65 days away. Under the Indian context, which options are liquid for even otm strikes? At least nifty?

For example, if you sold a short strategy for $ and you can buy it back for 75 cents a week before expiration, you should jump on the opportunity. Very rarely will it be worth an extra week of risk just to hang onto a measly 75 cents.

So what should Ajay do? Clearly this situation has put Ajay in a dilemma as he is uncertain whether to buy the land from Venu or not. While Ajay is muddled in this thought, Venu is quite clear about selling the land if Ajay is willing to buy.

Options are contracts giving the owner the right to buy or sell an asset at a fixed price (called the &ldquo strike price &rdquo ) for a specific period of time. That period of time could be as short as a day or as long as a couple of years, depending on the option. The seller of the option contract has the obligation to take the opposite side of the trade if and when the owner exercises the right to buy or sell the asset.

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