Basics of Options Trading FAQs

What does call and put option in bank nifty mean ?

Bank Nifty is an index that includes 12 banks from both the public and private sectors. Bank Nifty Options has a lot size of 40. The underlying asset in a Bank Nifty option is the Bank Nifty Index. Bank Nifty can be traded in the same way as any other stock or index.

You have the right to purchase the underlying at a specific price and for a certain time period with a Bank Nifty call option. The same applies to a Put option in Bank Nifty.

If you are bullish about the market, you can buy a Bank Nifty Call Option and a Bank Nifty Put Option if you expect the price to fall.

What is the work of Options ?

How many types of Options ?

What is strike price of option ?

When does Options expire?

What is the process for trading options ?

How futures and Options are different ?

How Nifty can be traded ?

What will happen when an option expires out of money ?

Do I have to pay margin in Options ?

How can the Options contracts be settled ?

What do you mean by Covered Options ?

When do you mean by Naked Options ?

What does American Options refers to ?

What does European option mean? ?

In Options , What is the meaning of At-The-Money , Out-of-the-Money (OTM) and In-The-Money ?

How to take decision on either to buy /sell call Option or put Option ?

Is it possible to trade on option of any stock or index?

How Square off and exercise an Option is different ?

What does intrinsic value of an option mean and how to calculate intrinsic value of an option ?

What does time value of an Option mean ?