Practical Examples
Example 1: Bullish Trade
Buy 1 call of Stock A at ₹100 strike, premium ₹5.
Stock rises to ₹120.
Profit = (120 – 100) – 5 = ₹15 per share.
Example 2: Bearish Trade
Buy 1 put of Stock B at ₹150 strike, premium ₹8.
Stock falls to ₹130.
Profit = (150 – 130) – 8 = ₹12 per share.
Example 3: Covered Call
Own Stock C at ₹200.
Sell call at ₹220, premium ₹5.
Stock rises to ₹230.
Profit = (220 – 200) + 5 = ₹25 (missed extra ₹10).
Protection against small drops due to premium received.
Advantages of Options
Limited risk for buyers
Leverage potential
Flexibility in strategy
Hedging capabilities
Profit from multiple market directions
Example 1: Bullish Trade
Buy 1 call of Stock A at ₹100 strike, premium ₹5.
Stock rises to ₹120.
Profit = (120 – 100) – 5 = ₹15 per share.
Example 2: Bearish Trade
Buy 1 put of Stock B at ₹150 strike, premium ₹8.
Stock falls to ₹130.
Profit = (150 – 130) – 8 = ₹12 per share.
Example 3: Covered Call
Own Stock C at ₹200.
Sell call at ₹220, premium ₹5.
Stock rises to ₹230.
Profit = (220 – 200) + 5 = ₹25 (missed extra ₹10).
Protection against small drops due to premium received.
Advantages of Options
Limited risk for buyers
Leverage potential
Flexibility in strategy
Hedging capabilities
Profit from multiple market directions
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
פרסומים קשורים
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
פרסומים קשורים
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.