Category: Options Trading

Options Expiry is something every serious Indian trader and investor should understand clearly. A practical walkthrough of what actually happens to an options position as expiry approaches and arrives. What Expiry Actually Means Options expiry is the date an option contract ceases to exist — after which it either gets exercised (if...

Butterfly Spread Strategy is something every serious Indian trader and investor should understand clearly. An introduction to the butterfly spread — a defined-risk, defined-reward strategy built for a very specific price target. What a Butterfly Spread Involves A butterfly spread combines three strike prices using four total option contracts — typically buying...

Selling Options For Income is something every serious Indian trader and investor should understand clearly. A balanced look at option-selling strategies for generating income, including the risks that often get underplayed. The Basic Appeal of Selling Options Selling options — whether calls, puts, or combinations — generates immediate premium income upfront, appealing...

Protective Put Strategy is something every serious Indian trader and investor should understand clearly. How buying put options against existing stock holdings works as a form of portfolio insurance, and what that insurance actually costs. What a Protective Put Involves A protective put involves buying a put option against stock you already...

Calendar Spread Options Strategy is something every serious Indian trader and investor should understand clearly. A look at how calendar spreads exploit the difference in time decay between near-term and longer-dated options. What a Calendar Spread Involves A calendar spread — also called a time spread — involves selling a near-term option...

Bull Call Spread Vs Bear Put Spread is something every serious Indian trader and investor should understand clearly. How defined-risk directional spreads work, and when traders choose them over simply buying a call or put outright. Why Traders Use Spreads Instead of Simple Options Buying a call or put outright offers unlimited...

Iron Condor Strategy is something every serious Indian trader and investor should understand clearly. A detailed look at the iron condor — a four-legged options strategy built to profit when a market stays within a defined range. What an Iron Condor Is Built From An iron condor combines two credit spreads —...

Covered Call Strategy is something every serious Indian trader and investor should understand clearly. How selling call options against existing stock holdings can generate extra income, and the specific trade-offs that come with it. What a Covered Call Actually Involves A covered call involves selling a call option against stock you already...

Straddle Vs Strangle is something every serious Indian trader and investor should understand clearly. A side-by-side comparison of two popular options strategies built to profit from big moves, regardless of direction. What Both Strategies Have in Common Both straddles and strangles are built for traders who expect a significant price move but...