Part 4 Institutional Option Trading VS. Technical Analysis

⭐Components of an Option Contract

Strike Price — the fixed price mentioned in the contract.

Premium — price you pay to buy the option.

Expiry Date — weekly/monthly expiry.

Underlying Asset — Nifty, Bank Nifty, stock, etc.

Option Type — Call (CE) or Put (PE).

Lot Size — options are traded in lots (example: Nifty = 50 units).

American vs European — India uses European, meaning exercised only at expiry.

Moneyness — whether option is ITM, ATM, or OTM.