What is option trading in nifty. Contents 1 Options 2 Options Valuation Fair Value Option Analysis 3 NIFTY VIX 4 NIFTY Futures 5 Options Trading Options Options are.

What is option trading in nifty

Simple steps to find the best option trading strategies for NIFTY

What is option trading in nifty. The theory is widely accepted and in India we call it NIFTY Pain and our index (Sensex is sort of forgotten lord) NIFTY50 drives the most volatility in options.

What is option trading in nifty

A Newcomer always want to know about these segment. Number of questions aries in his mind like what is Nifty Future? How to buy call and put? What is call options? What is Put options? We are going to share here some information about Nifty options with you in very simple language. These are basically, contracts which expired on last thursday of the month of on expiry day. Let us first explain CALL. Then there are call options available for Nifty Future like there will be call option, call option, Call option prices move up or down as Nifty Future move up or down.

Let us take one example for call option, If Nifty Future at and Nifty call available at Rs. Lot of other factor also impact on options prices, like if it is the starting of fresh expiry then call option will be less volatile and as the expiry date will come closure option becomes very volatile.

Now what is Put option? As we said PUT means down. Then there are PUT options available for Nifty Future like there will be put option, put option, Put option prices move up or down as Nifty Future move up or down.

What is option writing? To sell any call option or put option without having position in our account is know as option writing. Suppose Nifty Future is around and we think that till expiry it will not cross And Nifty call available at suppose 3 rs. Then we can sell it. We can sell one lot or more lot as per our capacity. If we are selling this option then we will get Rs. If we are not covering it , means we are not buying it then there is the provision of some penalty.

So it is our advice to cover your position before settlement. If in any case, Nifty moved to after your option writing then the value of Nifty call will be rs and as you sold it at 3 rs , so your current loss will be Rs. So in simple lagunage your buying price rs and sell price 3 rs. Suppose you bought today one lot Nifty call at Rs. Suppose you bought today Nifty put at 70 rs and sold out same day at 80 , it means you gained points and your profit will be.

Suppose you bought 10 lot Nifty call at 30 rs and sold same day at 40 rs, it means your total profit will b e. Now I hope that Nifty options trading concept is clear to you. If you want to share your view with us or having any kind of query and want to ask any question then you can post it here, as soon as possible, you will get the reply.

You can directly write to us to email id "smileadvisory yahoo. How to trade in Nifty Future? What is Nifty Options? What is call and put? How to trade in Nifty Options? What is Stock Future? How to trade in Stock Future? What is Stock Options? How to trade in Stock call and put options? What is Cash intraday or Equity intraday? How to do Equity intraday trading?

How to calculate profit in Nifty options trading? Let us take more example: What is Nifty Future? Comments - your comment will be here.


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