Eps:-03 Identifying option buying opportunities through option chain I option trading I call & Put

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Eps:-03 Identifying option buying opportunities through option chain I option trading I call & Put

CALL and PUT Options Trading is very popular. In layman terms, for the call and put option buyers or holders, the loss is capped to the extent of the premium of the option but profit or gain is unlimited. CALL and PUT Options Trading is also used to find out the short term trend or sentiments of the stock or index.

The option is a derivative that gives right but not an option to buy/sell a stock or index at a set price on or before a set date. On the other hand, futures give both right and obligation to the buyer or seller of the futures contract. However, technically speaking for option writers or sellers i.e. call writers and put writes, there is an obligation to honor the contract.

In layman term, CALL is basically a deposit for the future purpose. If the strike price is hit then the call holders will gain and call writers will lose. On the other hand, put is basically an insurance used for hedging. If the strike price is hit the put holders or buyers will gain and put writers will lose.

To summarize, Call holders and put writers are bullish on market whereas call writers and put buyers are bearish on the market.

[vinaysabnis]

It is great to see that you are personnaly answering my queries. Thank you very much. It is rare & very pleasant. We are waiting for your next videos in this series.

[vishwanath]

Sir very good morning. Your efforts are excellent in teaching OPTION CHAIN. we will get maximum help. Thank You sir.

[vinaysabnis]

Great, Thank you. When can expect next videos ?

[rajeshraut]

very informative and quality video. guys please like the videos.

[vinaysabnis]

why do you say that option buying is slow poisoning ?