Nifty 50 Index
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Option trading is a part of the derivatives market where investors buy and sell contracts known as options. These contracts derive their value from an underlying asset, which can be a stock, index, commodity, or currency.

In India, the most commonly traded options are based on Nifty 50, Bank Nifty, and stocks like Reliance, TCS, Infosys, etc.
Options give traders the right, but not the obligation, to buy or sell the underlying asset at a predetermined price (strike price) before or on the expiry date.

Types of Options:

Call Option: Gives the buyer the right to buy the underlying asset.

Put Option: Gives the buyer the right to sell the underlying asset.

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