Tuesday, 12 July 2016

TIMING IS ESSENCE WHEN BUYING CALL OPTION

Timing is of great essence in the stock market. Same applies to the derivatives market too, especially since you have multiple options. So when do you buy a call option?
To maximize profits, you buy at lows and sell at highs. A call option helps you fix the buying price. This indicates you are expecting a possible rise in the price of the underlying assets. So, you would rather protect yourself by paying a small premium than make losses by shelling a greater amount in the future.
You thus anticipate a rise in the stock markets, i.e., when market conditions are bullish.
When do you buy Call Options By Kotak Securities®
Timing is of great essence in the stock market. Same applies to the derivatives market too, especially since you have multiple options. So when do you buy a call option?
To maximize profits, you buy at lows and sell at highs. A call option helps you fix the buying price. This indicates you are expecting a possible rise in the price of the underlying assets. So, you would rather protect yourself by paying a small premium than make losses by shelling a greater amount in the future.
You thus anticipate a rise in the stock markets, i.e., when market conditions are bullish.

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