CALLS GIVEN IN TODAY'S POST TO CHECK VISIT https://optioncallputtradingtips.blogspot.com/2023/04/option-call-put-tips-for-6-april-2023.html
NIFTY 17600 6 APR CALL BUY GIVEN @ 22 ACHIEVED BOTH THE TARGET 32/44 PROFIT OF 1600
BANKNIFTY 41300 6 APR CALL BUY GIVEN @ 60 ACHIEVED 1ST TARGET 80 PROFIT OF 500
NET PROFIT OF 2100 WITH 5200 INVESTMENT
BUY 2 LOT NIFTY 17600 6 APR CALL @ 22 TARGET 32/44
BUY 2LOT BANKNIFTY 41300 6 APR CALL @ 60 TARGET 80/110
MGL STRATEGY GIVEN IN TODAY MORNING POST TO CHECK VISIT https://optioncallputtradingtips.blogspot.com/2023/04/mgl-option-plain-vanilla-strategy-for.html
MGL 950 CALL BUY GIVEN @ 23-24 ACHIEVED TARGET 29-30 PROFIT OF 5600
INVESTMENT 18400
RETURN OF 24000 IN MGL STRATEGY
OPTION STRATEGY BUY 1 LOT DIXON 2950 CALL @ 70-71 TARGET 119-120
OPTION CALL PUT TIPS GIVEN IN TODAY'S POST TO CHECK VISIT https://optioncallputtradingtips.blogspot.com/2023/04/option-call-put-tips-for-5-arpil-2023.html
FEDERALBANK 128 PUT BUY GIVEN @ 1.4-1.5 ACHIEVED TARGET 2.4-2.5 PROFIT OF 5500
BHEL 67 PUT BUY GIVEN @ 1.6-.1.65 ACHIEVED TARGET 2 PROFIT OF 4200
NIFTY 17500 6 APRIL BUY GIVEN @ 40 ACHIEVED TARGET 50/64 PROFIT OF 1700
NET PROFIT OF 11400 IN OPTION CALL PUT TIPS ON 5 APRIL 2023
OPTION STRATEGY BUY 1 LOT MGL 950 CALL @ 23-24 TARGET 29-30
BUY 1 LOT FEDERALBANK 128 PUT @ 1.4-1.5 TARGET 2.4-2.5
BUY 1 LOT BHEL 67 PUT @ 1.6-.1.65 TARGET 2
BUY 2 LOTS NIFTY 17500 6 APRIL @ 40 TARGET 50/64
WHATSAPP YOUR NAME & SEGMENT ON 📞📞9039542248 📞📞TO GET LIVE TRADING TIPS IN FUTURE/OPTION
Call Option and Put
Option: An Overview
Many young traders are attracted to the future & Options
because they assume that they can earn huge returns in a short period of time
by trading in F&O and they don't need too much money. However, it comes
with a lot of risks. So, it is important to understand what is put and
call in the share market, the difference between the call and put option, how
it works and the risk associated with it. In this article, we are going to
learn about the call put option, call put meaning, call and put options
examples, share market call and put, and the difference between
call and put option.
What Is A Derivative?
A derivative is a financial instrument. The basic definition of
a derivative is that its value is derived from some other thing. For
example, suppose Virat kohli has signed a Bat. The original price of the bat is
Rs. 1000, but the minute Virat kohli signed on that Bat the value increased
tremendously because of high demand. Hence, the value of the Bat is now derived
from Virat kohli's success and the value of the Bat will fluctuate based on the
performance of Virat kohli.
Key Takeaways
A buy-put option allows traders to earn profits when the market
is down.
Whenever you trade in Futures & Options, it comes in lot
sizes. So, you cannot buy one share. The lot size is pre-decided by the stock
exchange.
Future & Options gives you leverage which means you get to
trade with borrowed money. This is the reason it is extremely risky.
Types of Derivatives
There are 4 types of derivatives in the share market: Forward,
Futures, Options, and Swaps. Among these four derivatives, forwards and swaps
are not traded in the stock market.
Forward:
Forward means that you are taking a bet today on the future or forward. Let's
understand with an example, a farmer is cultivating potato and he is
assuming that the price of the potato will decrease after 3 months. Let's
say, the price of potato per Kg is Rs. 20 today and after 3 months it may reach
Rs. 15. So, the farmer buys a forward contract from a trader, which means even
if the price of the potato falls down the trader is obliged to buy the
potato from the farmer at a predetermined price. However, there is no
authority to ensure the contract in Forward contracts.
Futures:
Futures contract is listed in the stock market and the exchange itself
authorizes it. So, the exchange takes the responsibility that if you take any
futures contract then you will get the stock and the one who is selling is also
ensured by the exchange. Futures contracts are of 3 types: This month, next
month, and far month. But one thing you need to know about the Future option is
that at the deadline, you will have to buy the stocks that day only. In other
words, you have to take the delivery of the stocks. However, a Futures contract
is tradable which means you can trade it like a stock. For example, you buy a
futures contract of a Tatasteel stock and you can sell it whenever you want to.
So, you can sell the contract, the minute you get a little profit. Make sure
that you have sufficient amounts in your Demat account to take the
delivery.
Options:
Options give you the option of buying and selling on the day of delivery. On
the date of delivery, you will have the option to buy or not to buy at that
price. For example, Tatasteel stock is trading at Rs. 2100 right now. You
assume that the price will increase to Rs. 2200 after a month. So, you decided
that you will buy tatasteel shares at Rs. 2150 after one month. Let's say, the
stock price has reached Rs. 2500 after a month. In options, you get a 10%
margin, which means you will have to give Rs. 200 per share. The margin paid is
Rs. 200 at a stock price of Rs. 2100. so the total cost incurred is Rs. 2350.
Hence, you are getting a stock worth Rs. 2500 at Rs. 2350. But at the other
end, let's say the stock price has reached Rs. 2000 from Rs. 2100. Now that you
have given a margin of Rs. 200, you can buy this stock at Rs. 2150, or have the
option of not buying it. If you buy the stock, you will be at loss.
Options are categorized into two types:
Call Option
A call option is an option to buy a share at a specific price at
a future date. It allows the trader to buy the shares at a certain price in the
future. If traders speculate that the price of the security will rise, they can
sell a put option. When a trader opts for a call option, they buy the shares at
the strike price and hope that the price of the stock will rise. And if the
stock price rises, the trader can buy at the strike price which means they buy
the shares at a lower price and can sell them to earn a profit.
Put Option
A put option is an option to sell a share at a specific
price at a future date. If traders speculate that the price of the
security will fall, they can buy a call option. When a trader opts for a put
option, they get the right to sell shares at the strike price and hope that the
stock price will decrease. if the stock price reaches lower than the strike
price, they can sell the shares to earn profit.
Call and Put Options
Examples
Example of a call
option:
Let's say, you bought a share of a company Tatasteel for Rs.
2100 and the option's value is 10%. You bought shares worth Rs. 2100 by giving
Rs. 200. Let's assume the lot size is 100. So, you gave 200*100 = Rs. 20,000
and got shares worth Rs. 2,10,000. If the share price increases to Rs. 2300
from Rs. 2100, which means the share price increases by Rs. 200. So, the total
profit is the profit per share (200)* lot size (100) = Rs. 20,000. Hence, the
total profit is Rs. 20,000 on the investment amount of Rs. 20,000.
But if the trade goes wrong or the other way, for example, if
the stock price will decrease by Rs. 200. The stock value of Rs. 2100 will
reach Rs. 1900 in the future. Your loss per share will be Rs. 200 and your
total loss amount will be [loss per share (200)* lot size (100)] = Rs.
20,000.
Difference Between Call
and Put Option
Call options give you the right to buy shares. Whereas put
options give you the right to sell shares.
In the case of call options, there is unlimited risk associated
with the option seller. On the other hand, in the case of put options, there is
limited risk associated with option sellers.
In the case of a call option, there is limited risk for option
buyers. Whereas in the case of a put option, there is limited risk for the option
buyer.
To conclude, trading in Futures & Options provides a lucrative avenue to many traders. Traders speculate on the price of the security and get attractive returns when the trade goes well. It is suitable for those who have a high-risk appetite and have a good understanding of futures & options.
