Option Trading

Option Greeks

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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, traders use Option Greeks, which help assess risk and manage option positions effectively. 1. What ... Read more

Covered Put

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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 but stay above the strike price. Ideal for moderately bearish conditions, where a modest price … Read more

Covered Call

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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 to rise slightly but stay below the strike price. Ideal for moderately bullish conditions, where … Read more