How Options Work in Practice
Let’s take a real-life relatable scenario:
👉 Suppose you think Nifty (20,000) will rise in the next week.
You buy a Nifty Call Option 20,200 Strike at premium ₹100.
Lot size = 50, so total cost = ₹5,000.
Now:
If Nifty goes to 20,400 → Your option is worth ₹200 (profit ₹5,000).
If Nifty stays at 20,000 → Option expires worthless (loss = ₹5,000).
So, with only ₹5,000, you controlled exposure worth ₹10 lakhs. That’s leverage.
Participants in Options Market
There are four main categories of traders:
Call Buyer → Expects price to go UP.
Call Seller (Writer) → Expects price to stay flat or go DOWN.
Put Buyer → Expects price to go DOWN.
Put Seller (Writer) → Expects price to stay flat or go UP.
Let’s take a real-life relatable scenario:
👉 Suppose you think Nifty (20,000) will rise in the next week.
You buy a Nifty Call Option 20,200 Strike at premium ₹100.
Lot size = 50, so total cost = ₹5,000.
Now:
If Nifty goes to 20,400 → Your option is worth ₹200 (profit ₹5,000).
If Nifty stays at 20,000 → Option expires worthless (loss = ₹5,000).
So, with only ₹5,000, you controlled exposure worth ₹10 lakhs. That’s leverage.
Participants in Options Market
There are four main categories of traders:
Call Buyer → Expects price to go UP.
Call Seller (Writer) → Expects price to stay flat or go DOWN.
Put Buyer → Expects price to go DOWN.
Put Seller (Writer) → Expects price to stay flat or go UP.
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.