Exploring the realm of options trading unveils two key players: Buyers and Sellers.
Each wields unique strategies with its mix of risks and rewards.
Let's break it down in simple terms.
# Option Buyers: Riding on Possibilities
Chances of Making Money (PoP):
Buyers aim for good market moves, counting on accurate predictions within a specific time.
Risk:...
Cracking the Code: Understanding Intrinsic Value and Moneyness in Options Trading
Welcome to the journey of unraveling the mysteries of options trading. Today, we'll demystify two crucial concepts: Intrinsic Value and Moneyness. Let's dive in.
# Moneyness in a Nutshell
In options trading, Moneyness is the magic word that describes the relationship between...
Understanding Options Trading Terminology: An In-Depth Guide
Embarking on the journey of options trading requires a solid grasp of key terms. Let's delve into the intricacies of these terms to equip you for successful trading.
# Call Options (CE) and Put Options (PE)
**Call Options (CE):**
- When you buy a Call option (going Long), you're betting on the...
What are derivatives?
Basic interpretation : something which is based on another source.
A derivative is a contract or product whose value derives from the value of the base asset. The base asset is called the underlying asset.
i.e., Sugar prices will rise if sugarcane prices increase due to low production. It means sugarcane is the underlying asset of sugar...
