Option Trading vs Stock Trading
Stocks = Ownership, long-term growth, dividends.
Options = Contracts, leverage, flexible strategies.
Stocks = Simpler, but capital-intensive.
Options = Complex, but require less capital and offer hedging.
For example:
Buying 100 shares of Reliance at ₹2500 = ₹2,50,000.
Buying 1 call option of Reliance at ₹100 premium with lot size 250 = only ₹25,000.
This leverage makes options attractive—but also riskier.
Real-Life Examples & Case Studies
Case 1: Bull Market
A trader buys Nifty 20000 Call at ₹200 premium. Nifty rallies to 20500. Profit = ₹300 (500 – 200). Huge return on a small premium.
Case 2: Bear Market
Investor holds TCS shares but fears a fall. Buys a protective put. When stock drops, put increases in value, reducing losses.
Case 3: Neutral Market
Trader sells an Iron Condor on Bank Nifty, betting price will stay range-bound. Premium collected = profit if market stays sideways.
Stocks = Ownership, long-term growth, dividends.
Options = Contracts, leverage, flexible strategies.
Stocks = Simpler, but capital-intensive.
Options = Complex, but require less capital and offer hedging.
For example:
Buying 100 shares of Reliance at ₹2500 = ₹2,50,000.
Buying 1 call option of Reliance at ₹100 premium with lot size 250 = only ₹25,000.
This leverage makes options attractive—but also riskier.
Real-Life Examples & Case Studies
Case 1: Bull Market
A trader buys Nifty 20000 Call at ₹200 premium. Nifty rallies to 20500. Profit = ₹300 (500 – 200). Huge return on a small premium.
Case 2: Bear Market
Investor holds TCS shares but fears a fall. Buys a protective put. When stock drops, put increases in value, reducing losses.
Case 3: Neutral Market
Trader sells an Iron Condor on Bank Nifty, betting price will stay range-bound. Premium collected = profit if market stays sideways.
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Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
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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.