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Options are a type of derivative security. They are derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right but not the obligation to buy or sell an un

A Short Call Butterfly is implemented when an investor is expecting volatility in the underlying assets. This strategy is initiated to capture the movement outside the wings of the options at expiration. It is a limited risk and a limited reward stra

In today’s fast-changing financial world, most investors want the same thing: steady wealth creation without exposing their hard-earned money to unnecessary risk. But with market ups and downs and rising inflation, finding the right investment opti

An option premium consists of components, namely Intrinsic value and the Time value. Option premium = Intrinsic value + Time value ITM ATM OTM INTRINSIC VALUE YES NO NO TIME VA

Trading in the stock market is never a straight road. At times, prices rise sharply, and at other times, they fall quickly. But there are also phases when the market does not move much at all. It trades within a narrow range, leaving investors wonder

If you’re new to trading, it can feel like trying to solve a puzzle while the pieces keep changing shape. One minute, you’re up; the next, you’re questioning why you even clicked that buy button. The truth is trading is about having a struct

In the past, when traders wanted to get involved with anything from stocks to futures, they had to find a quality broker that could help them close these deals in the market. This basically meant that anyone who couldn’t reach a broker or who didn�

Volatility is often viewed as a risk in financial markets, but for options traders, it can be a powerful opportunity. One strategy built specifically to benefit from sharp price swings is the Long Straddle. In 2026, markets are reacting rapidly to

Open interest is the number of options or futures contracts that are not closed. In simple words it is the number of outstanding contracts. It only applies to futures and options contract. Let’s try to understand the concept of open interest wit

Have you ever heard someone say, “I invest in stocks,” but they’re checking prices every five minutes and selling after a few days? Chances are, they’re not investing, they’re trading. Or maybe even speculating. Many people use these ter

As Indian equity markets mature, investors are no longer limited to the broad-based mutual funds. The product landscape has grown to offer more targeted products, including sector funds. These funds target one industry; it could be the banking indust

Let’s face it, retirement today doesn’t look anything like it did two decades ago. As people live longer, healthcare costs rise, and traditional pension schemes fall short, many professionals are reassessing their financial plans. The question is