Part 11 Trading Master Class

Types of Options

There are two basic types:

a) Call Option (CE)

A Call Option gives the right to buy the underlying at a fixed strike price.

Traders buy calls when they expect the price to go up.

Example: Nifty trading at 22,000 → You buy 22,200 CE expecting upside.

b) Put Option (PE)

A Put Option gives the right to sell at a fixed strike price.

Traders buy puts when they expect the price to fall.

Example: Nifty trading at 22,000 → You buy 21,800 PE expecting downside.