Option Trading in India
India has seen a boom in retail options trading.
1. Exchanges
NSE (National Stock Exchange): Leader in index & stock options.
BSE (Bombay Stock Exchange): Smaller but growing.
2. Popular Underlyings
Nifty 50 Options (most liquid).
Bank Nifty Options (very volatile).
Stock Options (Infosys, Reliance, HDFC Bank, etc.).
3. SEBI Regulations
Compulsory margin requirements.
Weekly index expiries (Thursday).
Physical settlement of stock options at expiry.
Put Options (Right to Sell)
A Put Option gives the holder the right to sell at a strike price. Used when expecting prices to fall.
Example: Buying Infosys ₹1,500 Put at ₹50 premium pays off if Infosys drops below ₹1,450.
Option Market Participants
Hedgers: Reduce risk by using options as insurance. (e.g., farmer hedging crop price, or investor protecting stock portfolio).
Speculators: Bet on price movements to earn profits.
Arbitrageurs: Exploit price differences across markets.
Writers (Sellers): Earn premium by selling options but take on higher risks.
India has seen a boom in retail options trading.
1. Exchanges
NSE (National Stock Exchange): Leader in index & stock options.
BSE (Bombay Stock Exchange): Smaller but growing.
2. Popular Underlyings
Nifty 50 Options (most liquid).
Bank Nifty Options (very volatile).
Stock Options (Infosys, Reliance, HDFC Bank, etc.).
3. SEBI Regulations
Compulsory margin requirements.
Weekly index expiries (Thursday).
Physical settlement of stock options at expiry.
Put Options (Right to Sell)
A Put Option gives the holder the right to sell at a strike price. Used when expecting prices to fall.
Example: Buying Infosys ₹1,500 Put at ₹50 premium pays off if Infosys drops below ₹1,450.
Option Market Participants
Hedgers: Reduce risk by using options as insurance. (e.g., farmer hedging crop price, or investor protecting stock portfolio).
Speculators: Bet on price movements to earn profits.
Arbitrageurs: Exploit price differences across markets.
Writers (Sellers): Earn premium by selling options but take on higher risks.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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.