All About Option Trading -A Beginner's Guide

Options are a type of tradable contract that are speculated by investors.

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Options are also known as derivatives, meaning they drive their value from another asset.

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WHY OPTIONS ?

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What is Premium?

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CALL and PUT

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ITM/ATM/OTM

ITM: In The Money

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ATM: At The Money

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All About Option Trading -A Beginner's Guide

All About Option Trading -A Beginner's Guide

Options are a type of tradable contract that are speculated by investors.

Options are a type of tradable contract that are speculated by investors.

Options are also known as derivatives, meaning they drive their value from another asset.

Options are also known as derivatives, meaning they drive their value from another asset.

WHY OPTIONS ?

WHY OPTIONS ?

1. They offer leverage 2. Effective Risk Management Tool: When purchasing an option, the risk is simply the premium paid. 3.Source of Income

1. They offer leverage 2. Effective Risk Management Tool: When purchasing an option, the risk is simply the premium paid. 3.Source of Income

What is Premium?

What is Premium?

The price of an option The buying price of an option contract

The price of an option The buying price of an option contract

CALL and PUT

CALL and PUT

If your technical parameters or any setup identify that the direction of the market is up, then you buy a call or sell a put. Vice versa

If your technical parameters or any setup identify that the direction of the market is up, then you buy a call or sell a put. Vice versa

ITM/ATM/OTM

ITM/ATM/OTM

ITM: In The Money

ITM: In The Money

An option with a strike price (predetermined price) that has gone beyond the present spot price of the script

An option with a strike price (predetermined price) that has gone beyond the present spot price of the script

ATM: At The Money

ATM: At The Money

An option with a strike price (predetermined price) that is equal to the present spot price of the script

An option with a strike price (predetermined price) that is equal to the present spot price of the script

OTM: Out of The Money

OTM: Out of The Money

An option with a strike price (predetermined price) that is less than the present spot price of the script

An option with a strike price (predetermined price) that is less than the present spot price of the script

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