An option has two parts one is Call Option and other is Put Option. You can do trading in Index Options (Nifty option & bank nifty option), Stock future options. If you think market will go up then you should buy call option. If you think market will go down then you should buy put option. Our software will guide you to take decision of buying or short-selling Call or Put option according to market situation. If you buy call or put option the price you pay is called as “Premium”. Buying or Selling call/put option at a specified price is called as “Stick Price”. Always trade in current month future contract and near price call/put that means trade in the money call/put option. In the option time factor and strike price is very important. When new contract opens at that time call/put premiums are very high and when expiry of call/ put option is near its premium gets devaluated.
In the money Options: When current future price is higher than strike price it is called as “In the money option”. I.e. Nifty future current rate is 8000 & you buy Call Option of the strike price 7900.
At the money option: When current future price and strike price both are same or near it is called as “At the money option”. I.e. Nifty future current rate 8000 & you buy call / put option of the strike price 8000.
Out of the money option: When current future price is less than the strike price it is called as “Out of the money option”. I.e. Nifty current price is 8000 & you buy call option of the strike price 8500.
We recommend to trade on nifty future options, because of,