An option is a contract that gives you the right (not obligation) to buy or sell a stock at a fixed price within a specific time.
There are only 2 types: • Call Option • Put Option Simple as that!
A Call Option gives you the right to BUY a stock at a fixed price. You profit when the stock price goes UP
If a stock is ₹100 You buy a Call at ₹100 Stock goes to ₹120 You make profit (minus premium).
A Put Option gives you the right to SELL a stock at a fixed price. You profit when the stock price goes DOWN
Stock is ₹100 You buy a Put at ₹100 Stock falls to ₹80 You make profit (minus premium).
Premium = The price you pay to buy the option contract. It is your maximum loss as a buyer.
✔ Low capital requirement ✔ Hedging against losses ✔ High return potential ✔ Income strategies
Options trading is risky ⚠ Always learn strategy & risk management before trading.
Thanks for taking the time to read this !