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
Publicações relacionadas
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
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
Publicações relacionadas
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.