Options Buying and Selling
Options trading offers unique ways to profit from market movements with limited risk. In this guide, you'll learn the essentials of options buying and selling, including key terms like In-the-Money (ITM), where the option has intrinsic value; At-the-Money (ATM), where the strike price is close to the current market price; and Out-of-the-Money (OTM), where the option lacks intrinsic value. You'll also understand time decay, which refers to the reduction in an option's value as it nears expiration. Mastering these concepts is crucial for using options strategically, whether you're aiming for income, speculation, or hedging in the stock market.. MORE
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In this course, you will gain a comprehensive understanding of options trading, covering both buying and selling strategies. You’ll learn the fundamentals of call and put options, how to identify In-the-Money (ITM), At-the-Money (ATM), and Out-of-the-Money (OTM) positions, and the impact of time decay on option value. The course will also explore key trading strategies like covered calls, protective puts, and vertical spreads. You’ll discover how to analyze risk-reward, use option Greeks, and develop a disciplined trading mindset. By the end, you’ll be equipped with the knowledge and confidence to trade options effectively in various market conditions.
- Understanding Options Mechanics
- Market Analysis for Option
- Strategic Options Trading
- Risk Management & Position Sizing
- Time Decay & Option Greeks
Beginner
- 1.1 What are Options, Call v/s Put Options
- 1.2 A Brief History of Options Trading
- 1.3 Options Trading in India-How it evolved?
- 1.4 Understanding Call Options
- 1.5 Understanding Put Options
- 1.6 Best Bullish Options Strategies
- 1.7 Call Buyer vs Seller- Risk Graphs
- 1.8 Tools for Smart Trading
- 1.9 Key Takeaways
- 1.10 Case Study
- 4.1What are Options Greek
- 4.2 What is Delta?
- 4.3 What is Gamma?
- 4.4 What is Theta?
- 4.5 What is Vega?
- 4.6 What is Rho?
- 4.7 Interplay of Greeks
- 4.8 When is Greeks Most Important?
- 4.9Risk Graphs
- 4.10Real World Examples
- 4.11 Greeks in Multi Leg Strategies
- 4.12 Greeks in Expiry Trading
- 4.13 Practical Tips for Retail Traders
- Take Up This Quiz To Test Your Learning From This Module
- Earn Exciting Reward Points
- Level Up Your Badge
Intermediate
- 5.1 Passive Income Through Options Selling
- 5.2 Options Buying vs Options Selling
- 5.3 How to Scan Stocks for Options Trading
- 5.4 How to Determine Correct Entry and Exit
- 5.5 Probability based view of Popular FnO Strategies
- 5.6 Common Mistakes New Option Sellers
- 5.7 Strategy Suitability based on market Conditions
- 5.8 Entry/Exit Using Decision Trees
- 5.9 Position Sizing & Capital planning for FnO Strategies
- 5.10 Trade count Planning based on Capital
- 5.11 Tools and Scanners -What to Use and Look For
- 6.1 Strategic Trading with Nifty Long Call Options
- 6.2 Short Call Trade on Nifty
- 6.3 Long Put Trade Trade Idea and Entry on Nifty
- 6.4 How to Execute a Short Put on Nifty
- 6.5 Execute Options Trading on Nifty Using 5Paisa
- 6.6 Smart Options Selling Filters
- 6.7 When Not to Take the Trade
- 6.8 Why Volatility Context Matters in Options Trading
- 6.9 ROI, POP, and Break-even
- 6.10 Target Suggestions, and Exit Timing
- 6.11 Quick Reference by Strategy Type
- 6.12 Position Sizing & Capital Requirement in Options Trading
- 7.1 Order types, Transaction costs, Market Makers role
- 7.2 Understanding Option Trading Essentials
- 7.3 The four strategies BOX – Call and Put Options
- 7.4 Pitfalls of Short Calls and Short Puts
- 7.5 Four Strategy choices – 2 Bullish and 2 Bearish
- 7.6 Strategy -Case Studies
- 7.7 Market Maker (MM) Role – What Traders Must Know
Take Quiz
- Take Up This Quiz To Test Your Learning From This Module
- Earn Exciting Reward Points
- Level Up Your Badge
Advanced
- 8.1 Philosophy of Adjustments
- 8.2 Adjustments for Long Call positions
- 8.3 Adjustments for Short Calls, Long Puts and Short Put positions
- 8.4 Trade Management using sophisticated Conditional Order
- 8.5 Strategy-Based Conditional Order Mapping
- 8.6 Adjustment ROI Table – Understanding the Value of Adjusting Trades
- 8.7 AAdjustment Decision Tree – Flowchart
- 9.1 Introduction: Stock–Option Combination Strategies
- 9.2 Core Combination Strategies for Stock Investors
- 9.3 Using Options to Acquire Stock Below Market Price
- 9.4 Using Options to Sell Stock Above Market Price
- 9.5 Hedging Stock Positions with Options
- 9.6 Strategy Comparison Matrix
- 9.7 Case Study
- 9.8 Decision Support Tools
Take Quiz
- Take Up This Quiz To Test Your Learning From This Module
- Earn Exciting Reward Points
- Level Up Your Badge
