Option Basics

In this blog, we unravel the complexities of options trading, providing a clear understanding of key concepts, strategies, and practical steps for getting started. From the basics of call and put options to advanced strategies and risk management, this guide is designed to equip you with the essential knowledge to navigate the world of options trading confidently.

Discover the basics of American vs. European options, key features, and how to choose the right option type for your trading strategy in this blog.

Learn what a call option is, how it works, and when to use it. This blog covers basics, types, and examples to help you make informed investment choices.

Understanding how put options work and incorporating them into your investment strategy can help you navigate the ups and downs of the financial markets more effectively. In the following sections, we will delve deeper into the mechanics of put options, including how they are priced, how to trade them, and potential strategies for using them to your advantage.

this blog offers a detailed comparison of call and put options, their mechanisms, and essential terms, equipping you with the knowledge to navigate and leverage this intriguing financial market effectively.

Imagine you are planning to buy a house. You find one you like, but you’re not ready to commit yet. You make an agreement with the owner to buy the house in three months at a set price of ₹300,000, regardless of what the market does. This agreed-upon price is like the “strike price” in options trading.

In the world of finance, the strike price is crucial, determining the value and profitability of options. Let’s delve into this concept and understand its importance in the simplest terms.

In this blog, we’ll dive into the world of option premiums, breaking down what they are, how they’re calculated, and why they matter. Whether you’re a seasoned trader or just curious about the mechanics of the stock market, this guide will give you the tools to understand and leverage option premiums like a pro.

This article explores the concept of time decay in options, starting with a thorough explanation of the phenomenon and then examining its impact on option pricing.

When it comes to investing, grasping the difference between intrinsic and extrinsic value is key to making informed decisions. These two concepts not only help you assess the true worth of an asset but also guide your strategy in navigating the market. Let’s dive into these concepts with practical examples and see how they can enhance your investment approach.

In this blog, we’ll explore everything you need to know about expiry dates in options trading, from the basics to advanced concepts, with real-life examples to help clarify these ideas.

Ever wondered what happens when options expire? This blog explains expiration dates in option trading and what it means when call options expire in the money.

This blog explains the VIX meaning, or “fear index,” which measures market volatility and sentiment.

Using the analogy of Dilli Haat, it illustrates how the VIX works, what high and low VIX levels indicate, and how investors can use this information. It also highlights the VIX’s limitations, emphasizing its role as a predictive tool rather than a guarantee.

Ever wondered what goes on behind the scenes in the options market? Open interest (oi) plays a crucial role, giving you valuable insights into market sentiment. But what is Open Interest in options? Let’s break it down with a simple example and some helpful visuals.

Ever wondered what goes on behind the scenes in the options market? The debate of open interest vs volume often comes up, and both play crucial roles in helping traders gauge market sentiment.

Understanding the difference between these two can help you make more informed trading decisions. Let’s break it down with some simple examples and visuals!

Explore our simple guide on option chains to learn how to trade options more effectively and make smarter choices.

Master options trading using an option strategy builder. Explore basic to advanced strategies, tips, and tools to enhance your trading journey effectively.