Part 2 Ride The Big Moves

Call Option Simplified

A call option is useful when you expect the market to go up.

If you buy a call option, you are paying a premium to the seller.

If the price rises above your strike price before expiry, your call option gains value.

Example:
NIFTY trading at 22,000. You buy a 22,000 CE.
If NIFTY goes to 22,300, your call becomes profitable because you have the right to buy at 22,000.

If the market falls instead, you lose only the premium you paid.