Out-of-the-Money (OTM)
Out-of-the-Money (OTM) refers to an option that currently has no intrinsic value because the market price of
Category: Option Trading
Bid Price
Bid Price refers to the highest price that a buyer is willing to pay for an option
Bid-Ask Spread
Bid-Ask Spread refers to the difference between the highest price a buyer is willing to pay (bid
Ask Price
Ask Price refers to the lowest price at which a seller is willing to sell an option
Options Contract Types
1. Call Option (CE) Call Option gives the buyer the right, but not the obligation, to purchase
Option Greeks
Options trading offers strategic opportunities beyond simple price movement. Unlike stocks, options are affected by time, volatility,
Options Strategies
Options trading plays a crucial role in financial markets, offering traders and investors various ways to manage
Option Strategy Table Summary
Sl.No. Strategy Name Market Outlook Primary Objective Risk Level Profit Potential Loss Potential Strike Price Selection How
Rolling Straddle Hedge
The Rolling Straddle Hedge strategy involves: Building multiple Straddles using deep In-the-Money (ITM) Call & Put options
Bear Put Spread
A Bear Put Spread involves buying a put option at a higher strike price and selling a