1 / 15

10 Things You Need to Know Before You Trade Options

Discover the top 10 essential tips for trading options successfully. Learn strategies, risks, and key insights to enhance your trading skills and make informed decisions.

bigul
Download Presentation

10 Things You Need to Know Before You Trade Options

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 10 THINGS YOU NEED TO KNOW BEFORE YOU TRADE OPTIONS

  2. WHAT IS OPTIONS TRADING? Options Trading in generic terms entails buying or selling an underlying asset at a pre-agreed or pre-negotiated price by a specified future date.

  3. LET’S DISCUSS 10 ESSENTIAL THINGS THAT YOU MUST KNOW BEFORE YOU TRADE OPTIONS…

  4. NUMBER The main thing about options is that they come in a variety of maturities. Options with 1-, 2-, and 3-month expirations are also available in the market. In the case of indices, there are also long-term options available, and on different platforms as well, you can choose from varied options like weekly options.

  5. NUMBER With call-and-put options, you can buy and sell options, respectively. In almost all kinds of situations, the option buyer normally has the potential right to buy or sell, without any responsibility or stress. The buyer of the option pays a premium amount to the option seller in exchange for this privilege, which is not obligated and will not be obliged even in the future.

  6. NUMBER You’re only expected to pay the premium margin upfront initially because the premium you paid for a call or put option essentially becomes your maximum loss, which usually affects an overall growth rate and MTM margins, which are owed in the case of futures, are not a concern for option buyers. You can invest and earn big by choosing Bigul, the best trading platform in India.

  7. NUMBER Each option acquisition and the entire process involves a trade-off which in other words means, your options will be offered at a reduced premium if they have a shorter remaining maturity and this is only possible before the expiration date. However, the smaller outstanding maturity also implies that your chances of profiting from the options are diminished and considered null.

  8. NUMBER Volatility is the most important element that influences and pushes the value of an option. The link between call and put is often favorable and in trader’s favor and you’ll be surprised to know that both calls and puts gain in value when market volatility fluctuates which makes it the right time to trade and invest. You can start your trading journey with Bigul, the best options trading platform in India.

  9. NUMBER Among the primary advantages of using options in India is that the Securities Transaction Tax (STT) is calculated on the premium value compared to the notional value of the option. Compared to futures, where the STT is based on the notional value, options possess this advantage.

  10. NUMBER Keep in mind that the option price for a specific strike on a stock includes two parts: the value of the stock itself and the time value. Any options trader has to have an adequate understanding of these two ideas and if you wish to invest in options trading, make sure when you start trading, that you only choose the best in the market and without a doubt Bigul is the best option trading platform in India.

  11. NUMBER Understanding the immediate value and intrinsic value is crucial for successfully trading options in today’s time. Before anything else, let us remind you that an option is a wasting asset and It is necessary to understand why the time value of the option decreases as the maturity date comes closer, virtually reaching zero at that point can work in many ways.

  12. NUMBER Options are extremely versatile and dynamic goods which makes them quite interesting and very easy to utilise whenever needed. You can use a call option to speculate on the stock if you believe RIL’s stock will increase, yes you can easily do that. Want to know how? Let Bigul, the best options trading platform in India guide you. Similar to this, you can speculate by purchasing put options if you anticipate a decline in SBI’s stock price.

  13. NUMBER The last, but extremely important point to remember here is that options can be bundled to accommodate a variety of market circumstances that can be favorable and unfavorable at times, but once you invest and trade with a reputed and reliable company like Bigul, your stocks are probably more secure than ever.

  14. GET READY TO START YOUR TRADING JOURNEY WITH THE BEST OPTIONS TRADING PLATFORM IN INDIA, BIGUL

  15. LET'S CONNECT WITH US! 9090491913 support@bigul.co https://bigul.co/

More Related