Part 9 Trading Master Class With Experts

What Are Options?

Options are derivative contracts. This means their value is derived from an underlying asset—such as Nifty, Bank Nifty, stocks like Reliance or TCS, commodities, or currencies.

There are two types of options:

Call Options (CE) – Right to buy at a specific price

Put Options (PE) – Right to sell at a specific price

But remember this key point:
Options give a right, not an obligation.

This is what makes options asymmetric:

Buyers have limited risk and unlimited potential gain.

Sellers (writers) have limited profit but potentially high risk.