Part 2 Trading Master Class With Experts

Directional Strategies

These are for traders with a clear market view.

Long Call (Bullish)

When to Use: Expecting significant upward movement.

Setup: Buy a call option.

Risk: Limited to premium paid.

Reward: Unlimited.

Example: NIFTY at 20,000, you buy 20,100 CE for ₹100 premium. If NIFTY closes at 20,500, your profit = ₹400 - ₹100 = ₹300.

Long Put (Bearish)

When to Use: Expecting price drop.

Setup: Buy a put option.

Risk: Limited to premium.

Reward: Large if the asset falls.

Example: Stock at ₹500, buy 480 PE for ₹10. If stock drops to ₹450, profit = ₹30 - ₹10 = ₹20.

Covered Call (Mildly Bullish)

When to Use: Own the stock but expect limited upside.

Setup: Hold stock + Sell call option.

Risk: Stock downside risk.

Reward: Premium income + stock gains until strike price.

Example: Own Reliance at ₹2,500, sell 2,600 CE for ₹20 premium.