Learn Option Trading (SEBI Registered RA)

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What will you Get here?
◾ Here will get Daily Nifty/Banknifty Option Tips
◾ Live Market updates
◾ Nifty/Banknifty Support & Resistance
◾ Proper Trade learning with charts
◾ How to Analyse the Nifty/Banknifty Index
◾ Low risk Option Strategies
◾ Straddle & Strangle
◾ Call & Put Spread
◾ Proper SL, Entry & Exit
◾ Complete Support, Guidance & many more…

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Q. What is Option Trading?
Ans. Options trading allows you to buy or sell Nifty/Banknifty, Stocks etc.at a specific price within a specific date. The right to buy a security is known as ‘Buy Call’, while the right to sell the security is called ‘Buy Put’.

Q. Difference Between Option Buying & Selling?
Ans. BUYING: When you buy an option your risk is limited to the premium you pay. That is because your loss is limited to the premium paid & profits can be unlimited.
SELLING: On the other hand, when selling an option, your income is limited to the option premium received, but the losses can be technically unlimited.

Q. Option Buying or Selling which is Best?
Ans. Stock has three Moves like Upside, Downside and Sideways
•If the Price or Market Momentum is directional (Upside or Downside) then Option Buying is profitable.
•If the Price or Market Momentum is directional or sideways then in both case Option Selling is profitable because of Time Decay.
•From Above Scenario:
Option Buyers Wins: 1/3  = 33.3%
Option Seller Wins: 2/3  = 66.7%

Q. Capital Requirement in Option Buying & Selling?
Ans. Option Buying: Suppose you Bought
+1 X NIFTY 17500CE @ 70
i.e 70 * 50(Lot Size) = 3500Rs (Maximum Risk)

•Option Selling: Suppose you Sold
-1 X NIFTY 17500CE @ 70
i.e 70 * 50(Lot Size) = 3500Rs (Maximum Profit)
Because of unlimited risk we required higher margin around 1-1.3 Lac.

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