Options trading provides opportunities to hedge risk, maximize returns, and profit from market movements. Unlike stocks, option prices are influenced by multiple factors beyond the underlying asset’s price, such as time decay, volatility, and interest rates. To measure these effects,…
A Covered Put is a strategy where you short the underlying (e.g., BANKNIFTY Futures) and sell a put option at a lower strike price to earn premium income. It works best when the underlying price is expected to fall slightly…
A Covered Call is a strategy where you hold the underlying (e.g., NIFTY or BANKNIFTY Futures) and sell a call option at a higher strike price to earn premium income. This strategy works best when the underlying price is expected…