How Option Trading Works
There are two types of traders in options:
✔ Option Buyer
Pays small premium
Limited risk
Unlimited profit
Needs big movement in price
Time decay goes against them
✔ Option Seller
Receives premium
Limited profit
High risk
Wins when price stays sideways
Time decay works in their favour
📊 Option Chain
Option chain is like a menu of all options available.
It tells you:
Strike price
Call & Put premium
OI (Open Interest)
IV (Implied Volatility)
Expiry
There are two types of traders in options:
✔ Option Buyer
Pays small premium
Limited risk
Unlimited profit
Needs big movement in price
Time decay goes against them
✔ Option Seller
Receives premium
Limited profit
High risk
Wins when price stays sideways
Time decay works in their favour
📊 Option Chain
Option chain is like a menu of all options available.
It tells you:
Strike price
Call & Put premium
OI (Open Interest)
IV (Implied Volatility)
Expiry
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.