What Are Options? A Beginners Guide to Call and Put Options
Learn the basics of options trading in India. What are call and put options, how they work, and how to use them on Nifty and BankNifty.
What Are Options?
Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before a specific date.
In India, the most popular options are on Nifty 50 and BankNifty indices.
Call Options
A Call Option gives you the right to buy the underlying asset at the strike price. You buy a Call when you expect the market to go UP.
Put Options
A Put Option gives you the right to sell the underlying asset at the strike price. You buy a Put when you expect the market to go DOWN.
Disclaimer
This article is for educational purposes only and does not constitute financial advice.
This article is for educational purposes only and does not constitute financial advice. Please consult a SEBI registered investment advisor before making any investment decisions.