Learn Options

An option chain is a tool that provides a list of all available options contracts for a specific underlying asset. It displays the current market prices and other important information about each option, including the strike price, expiration date, bid-ask spread, and implied volatility. What is Option chain The option chain is typically organized in…

Option Greeks are parameters used to measure the sensitivity of an option’s price to changes in various underlying factors, such as the price of the underlying asset, the passage of time, implied volatility, and interest rates. Here are the details of the most commonly used option Greeks: Delta: Delta measures the sensitivity of an option’s…

Here are the 4 advantages of option selling over option buying: Higher Probability of Success: When selling options, traders can benefit from the time decay of options premiums, as options lose value as they approach expiration. This means that, all other things being equal, option sellers have a higher probability of success than option buyers….

Here are the 5 advantages of option buying over option selling: Limited Risk: When you buy an option, the maximum amount you can lose is the premium paid for the option. This means that the risk is limited, making it a safer trading strategy compared to option selling, where the potential losses can be unlimited….

Here are the 5 Key differences between stock options and index options in the Indian market: Underlying Asset The underlying asset of stock options is an individual stock, while index options are based on the performance of an underlying index, such as Nifty or Bank Nifty. Settlement Stock options in India are settled through compulsory…