Introduction to Moneyness
Moneyness is the relative position of the price of an underlying asset (i.e. stock) with respect to the strike price of the derivative, most commonly as a call option or…
When Should You SELL a PUT Option?
For an investor to yield a profit, the price of the security has to increase before its exercise date as opposed to a put buyer whose outlook is bearish. The…
When Should You BUY a PUT Option?
For an investor to yield a profit, the price of the security has to decrease before its exercise date. Buying a put option grants the rights to sell the security…
Weekly Options and Monthly Options
Nifty option contracts: Thursday (Every week, Last of the month) Fin Nifty option contracts: Tuesday (Every week, Last of the month) Bank nifty option contracts: Wednesday (Every week, Last of…
When Should You SELL a CALL Option?
An investor should sell a call option if there is a possibility that the price of the security may plummet. The premium amount can be recovered if the asset’s price…
When Should You BUY a CALL Option?
For an investor to yield a profit, the price of the security has to increase before its exercise date. When there is indeed a rise in the value of a…
Basic differences between CALL and PUT
CALL Option PUT Option An option contract providing the purchasing rights to a buyer which gives the buyers privilege to purchase a particular derivative like a stock, at a certain…