Part 2 Support ans Resistance

Advantages of Options

High leverage (small money → big exposure).

Flexibility (profit in up, down, or sideways markets).

Risk defined for buyers (can lose only premium).

Useful for hedging portfolios.

Risks of Options

Time decay: Value decreases as expiry approaches.

High leverage can cause big losses (especially for sellers).

Complexity: Needs knowledge of Greeks, volatility, etc.

Emotions: Options move fast → fear & greed affect traders.

Options Greeks (Advanced but Important)

The “Greeks” help measure how option prices move with market factors:

Delta → Change in option price vs stock price.

Gamma → Rate of change of Delta.

Theta → Time decay (how much premium falls daily).

Vega → Impact of volatility on premium.

Rho → Impact of interest rates.

👉 Example: If an option has Theta = -10, it means the premium will lose ₹10 per day (if all else same).