Stock Options Market – Call and Put
Stock Options Market Call and Put
Stock Options Market Call and Put
Option Market is the palce where you can make call(buy) and make put(sell), It offers to trader to make money with less capital.NSE Exchange introduced trading in Index Options (also based on Nifty) on June 4, 2001. NSE also became the first exchange to launch trading in Stock options on individual securities from July 2, 2001. In Stock Option, privilege sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date
What is a Call Option?
Buying & Selling Stock Options
A call option is a contract that grants the buyer the right, but not the obligation, to buy 100 shares of a particular stock, or stock index, at a certain price, anytime before a predetermined date. If the underlying stock does increase, the buyer makes money by buying the stock at the agreed-upon price, and selling at the higher market price, or selling the option at a price higher than it was originally bought. It is part of Stock trading that offers to trade in lot size.
The seller of the call option is called the writer. You can write a call by selling someone the option to buy a stock from you at a particular price, before the expiration date. If you write an option, you are obligated to sell the stock to the option holder, if the holder wishes to "exercise" or buy the stock from you at the predetermined price. When you write a call, you have no control over the contract being exercised.Call is buy means that in call option you haveto buy any lot which you want.
Some Terms that are used in Stock Option call Market
Call
An Option contract that gives the holder the right to buy the underlying stock at a certain price anytime before a predetermined date.
Expiration date
The day on which an option contract becomes void. The expiration date for listed stock options is the Saturday after the third Friday of the expiration month.
Strike Price
The stated price per share for which the underlying security may be bought by the option holder upon exercise of the option contract.
What Is A Put Option?
The buyer (or holder) of a Put Option has the right, but not the obligation, to sell their stock at the agreed strike price before the option's expiration. The seller (or writer) is obligated to buy the stock if the buyer (or holder) chooses to exercise the option.
A Put's price goes up as the underlying stock's price goes down, and goes down as the underlying stock's price goes up.
Buying & Selling Puts
When buying a Put Option, you believe the price of the underlying stock or index will drop. Your option gives you the right to sell the stock to the writer of the put at a predetermined price.
When selling (or writing) a Put Option, you believe that the price of the underlying stock or index will increase. You are giving the buyer (or holder) the right to sell you the underlying stock or index at the strike price of the option.
Some Terms that are used in Stock Option put Market
Put
An Option contract that gives the holder the right to sell the underlying stock at a certain price anytime before a predetermined date.
Expiration date
The day on which an option contract becomes void. The expiration date for listed stock options is the Saturday after the third Friday of the expiration month.
Strike Price
The stated price per share for which the underlying security may be bought by the option holder upon exercise of the option contract.
In Indian Stock Options you can round up your position before expire date. In Stock Option you can trade with call/put in the form of Lot Size decided by Exchange.There are various research firms in this market which provides stock tips, investors can take help from these side. Capitalvia Global Research Firm one of the most popular and global research firm which gives you best stock tips with two days free trial. you can also check a blog stock futures and options tips and get stock futures and options tips.
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