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Options Trading in India | Future and Options Trading

 

Options trading is a derivative market that allows you to buy or sell the right to buy or sell 
a security at a predetermined price on or before an agreed date. Options trading provides
 investors with greater flexibility in their investment decisions by giving them the ability to 
take advantage of both rising and falling markets.
The most common type of option contract is known as a call option, which gives its holder
 (buyer) the right but not obligation to buy shares at a fixed price called strike price before
 expiry date. The seller/writer on this contract has taken up an obligation to sell shares at
 strike price if buyer exercises his/her rights under this contract.
On the other hand put options give holders right but not obligation to sell shares at strike 
prices before expiration date; whereas sellers/writers have taken up obligation for buying 
back those same number of shares from buyers if they choose so within specified time 
frame.


ऑप्शंस ट्रेडिंग एक डेरिवेटिव मार्केट है जो आपको एक सहमत तिथि पर या उससे पहले एक
पूर्व निर्धारित मूल्य पर सुरक्षा खरीदने या बेचने का अधिकार खरीदने या बेचने की अनुमति देता है।
ऑप्शंस ट्रेडिंग निवेशकों को बढ़ते और गिरते दोनों बाजारों का लाभ उठाने की क्षमता देकर
उनके निवेश निर्णयों में अधिक लचीलापन प्रदान करता है।
सबसे आम प्रकार के विकल्प अनुबंध को कॉल विकल्प के रूप में जाना जाता है, जो इसके धारक
(खरीदार) को समाप्ति तिथि से पहले स्ट्राइक मूल्य नामक एक निश्चित मूल्य पर शेयर खरीदने का
अधिकार देता है लेकिन बाध्यता नहीं। इस अनुबंध पर विक्रेता/लेखक ने स्ट्राइक मूल्य पर शेयर
बेचने का दायित्व लिया है यदि खरीदार इस अनुबंध के तहत अपने अधिकारों का प्रयोग करता है।

दूसरी ओर, पुट विकल्प धारकों को समाप्ति तिथि से पहले स्ट्राइक मूल्य पर शेयर बेचने का
अधिकार देते हैं लेकिन बाध्यता नहीं; जबकि विक्रेताओं/लेखकों ने खरीदारों से उतने ही शेयर
वापस खरीदने का दायित्व लिया है, यदि वे निर्दिष्ट समय सीमा के भीतर ऐसा चुनते हैं

The Basics of Options Trading

You can trade options in two different ways:

You can buy an option, which gives you the right to buy or sell an underlying asset at a 
specified price within a given period of time
Or you can sell (write) an option, which means that you agree to sell or buy an underlying
 asset at a specified price within a given period of time
Options are contracts that give their owners the right--but not obligation--to buy or sell 
stocks at predetermined prices on specified dates. Options trading allows investors to
 speculate on whether stocks will rise or fall without actually purchasing them outright.

आप ऑप्शंस को दो अलग-अलग तरीकों से ट्रेड कर सकते हैं:

आप एक विकल्प खरीद सकते हैं, जो आपको एक निश्चित अवधि के भीतर एक निर्दिष्ट कीमत पर

एक अंतर्निहित परिसंपत्ति को खरीदने या बेचने का अधिकार देता है।

या आप एक विकल्प को बेच (लिख) सकते हैं, जिसका अर्थ है कि आप एक निश्चित अवधि के 

भीतर एक अंतर्निहित संपत्ति को एक निश्चित मूल्य पर बेचने या खरीदने के लिए सहमत हैं।

विकल्प अनुबंध हैं जो उनके मालिकों को निर्दिष्ट तिथियों पर पूर्व निर्धारित कीमतों पर स्टॉक 

खरीदने या बेचने का अधिकार देते हैं - लेकिन दायित्व नहीं। ऑप्शंस ट्रेडिंग निवेशकों को यह 

अनुमान लगाने की अनुमति देती है कि क्या स्टॉक वास्तव में उन्हें एकमुश्त खरीदे बिना बढ़ेंगे या 

गिरेंगे।

Contact Bhaskar Dey at 9830463636 to learn to trade in Stock Markets

Options Trading Strategies

Options trading strategies are a way to profit from the market without having to predict
 its direction. They can be used by both long-term investors and short-term traders, and
 they're an excellent way to diversify your portfolio.
Here are some of the most popular options trading strategies:

Long Straddle - A strategy where you purchase both a call option and a put option on the
 same underlying asset at the same time. The goal is for price movement in either direction,
 which will result in profits for you regardless of which direction it moves. This strategy 
works best when volatility is high (i.e., when there's lots of uncertainty about how much 
prices will move).
Long Strangle - Similar to a straddle except that instead of buying one call option and one 
put option, you buy two out-of-the money calls or puts with different expiration dates but 
similar strike prices; this reduces risk because if one expires worthless while another makes 
money due to its higher intrinsic value than what was paid for it originally then overall 
losses will be limited since they'll only occur if both expire worthless simultaneously (which
 isn't very likely).
ऑप्शंस ट्रेडिंग रणनीतियाँ बाज़ार की दिशा की भविष्यवाणी किए बिना उससे लाभ प्राप्त करने का 
एक तरीका है। उनका उपयोग दीर्घकालिक निवेशकों और अल्पकालिक व्यापारियों दोनों द्वारा किया
 जा सकता है, और वे आपके पोर्टफोलियो में विविधता लाने का एक शानदार तरीका हैं।
यहां कुछ सबसे लोकप्रिय ऑप्शंस ट्रेडिंग रणनीतियां हैं:
 
लॉन्ग स्ट्रैडल - एक रणनीति जहां आप एक ही समय में एक ही अंतर्निहित परिसंपत्ति पर कॉल 
विकल्प और पुट विकल्प दोनों खरीदते हैं। लक्ष्य किसी भी दिशा में मूल्य आंदोलन के लिए है, जिसके
 परिणामस्वरूप आपके लिए लाभ होगा चाहे वह किसी भी दिशा में चले। यह रणनीति सबसे अच्छा
 काम करती है जब अस्थिरता अधिक होती है (यानी, जब बहुत अनिश्चितता होती है कि कीमतें 
कितनी बढ़ेंगी)।
 
लॉन्ग स्ट्रैंगल - स्ट्रैडल के समान सिवाय इसके कि एक कॉल ऑप्शन और एक पुट ऑप्शन खरीदने के 
बजाय, आप दो आउट-ऑफ-द-मनी कॉल खरीदते हैं या अलग-अलग समाप्ति तिथियों के साथ डालते हैं
 लेकिन समान स्ट्राइक मूल्य; यह जोखिम को कम करता है क्योंकि यदि कोई बेकार समाप्त हो जाता है,
 जबकि दूसरा इसके उच्च आंतरिक मूल्य के कारण मूल रूप से इसके लिए भुगतान किए गए धन की
 तुलना में पैसा बनाता है, तो समग्र नुकसान सीमित होंगे क्योंकि वे केवल तभी घटित होंगे जब दोनों
 एक साथ बेकार हो जाएंगे (जो कि बहुत संभावना नहीं है) .

Options Trading in India

Options Trading in India
Options trading is a popular investment strategy that allows you to buy or sell an option contract on a security. An option contract gives you the right but not obligation to buy or sell an underlying asset at a specified price, known as strike price at any time before expiry. A call option gives its holder the right to buy stocks whereas put options give their holders the right to sell stocks.
The Indian Options Market has been around since early 2000s and has grown steadily over time with increasing participation from retail investors who are looking for alternative ways of generating income from their investments without having direct exposure in equity markets or commodities derivatives markets such as futures & forwards contracts etc., which requires substantial capital upfront compared with options trading where one can start off with just Rs 500 per trade depending upon whether they choose online platform like Zerodha (which offers commission-free trades) or offline broker like ICICI Direct which charges brokerage fees based on volume traded each month rather than per transaction basis making it more cost effective for small investors looking at making small amount every month instead of large lump sum amounts every year when trying day trading strategies like scalping etc., where one may end up losing money due bad luck factor involved here too!

Options Trading Strategies for Indian Traders

Long Call
A long call is a bullish strategy in which the trader buys calls and hopes that the stock price rises. The trader can make money on this trade if the price of the underlying asset increases or remains flat, but will lose money if it falls below its initial value. It's important to note that you don't have to be right about whether an asset will go up or down; all you need to know is whether it will stay where it is or move higher than its current price level.
Long Put
A long put option involves buying one put option contract (100 shares) at a strike price above current market value, with an expiration date set further out than current market conditions allow for profitable trading opportunities (e..g., 6 months). This strategy allows traders who believe prices may fall within this time frame while also providing downside protection against large losses due to unexpected volatility swings during that period of time leading up until expiration day when contracts expire automatically unless renewed by both parties involved in each transaction beforehand through another roundabout process involving exchanging paperwork between buyer/seller before agreeing upon new terms which could include additional fees paid upfront by either party depending upon circumstances surrounding each individual case scenario occurring during course time period between signing initial contract agreement form until finalizing new deal terms agreed upon between both parties involved."

Risks of Options Trading in India

Options trading in India is a risky business. The following are some of the risks associated with options trading:

Volatility risk: This refers to the possibility that your option will expire worthless due to a significant change in price movement before expiration. Options are more sensitive to changes in volatility than stocks, so it's important to consider this when choosing an option strategy and deciding how much money you're willing to risk on each trade.
Expiration risk: The other main risk comes from expiration itself--if you don't own any shares of stock by the time your option expires, then your entire investment will be lost (unless you've been able to sell it beforehand). To avoid this problem entirely, many traders choose not only where but also when they want their positions opened; however, this can lead them into even greater danger if they don't have enough time left before expiry arrives!

Options Trading Tips for Indian Traders

Start small
Use stop losses
Monitor the market

Tax Implications of Options Trading in India

You need to be aware of the tax implications of options trading in India.
Taxes on Capital Gains: The capital gains from selling an option are considered as income and taxed as per applicable slab rates. For example, if you sell an option that expires within one year and has a strike price at Rs 100/- with an intrinsic value of Rs 5/- then your taxable income will be calculated as follows:

Short term capital gain = (Selling Price - Purchase Price) x 100/Intrinsic Value
= (Rs 105/- - Rs 100/-) x 100/5 = 20% Taxable Income

Conclusion

Options trading in India is a great way to earn money and build your portfolio. It's important to understand the risks involved, but if you do your research and follow the rules, you can make it work for you!




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