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Harmonic Patterns

Part 1 Intraday Master Class Introduction to Option Trading Option trading is a form of derivatives trading that gives market participants the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time period. Unlike traditional stock trading—where investors buy or sell shares outright—options allow traders to control risk, enhance returns, hedge portfolios, or speculate on price movements with relatively lower capital. Options are widely used in equity markets, commodity markets, currency markets, and index trading. Over time, option trading has evolved from a niche hedging tool into a sophisticated financial instrument used by retail traders, institutional investors, hedge funds, and market makers.
NSE:NIFTYEducation
by SkyTradingZone
Part 2 Technical Analysis Vs. Institutional Option Trading Key Components of an Option Contract Every option contract has a few standard elements: a) Strike Price The price at which you can buy (call) or sell (put) the underlying asset. b) Premium The price you pay to buy the option. Think of it like a ticket price to take the trade. c) Expiry Date Options expire on a fixed date (weekly/monthly). If not exercised, they lose value after expiry. d) Lot Size You cannot buy 1 share option. Every option contract has a fixed lot size (e.g., Nifty = 50 units).
NSE:HDFCBANKEducation
by SkyTradingZone
Part 1 Technical Analysis VS. Institutional Option Trading What Are Options? Options are contracts that give you the right but not the obligation to buy or sell an asset at a fixed price before a certain date. They are derivative instruments — their value comes from the underlying asset (index, stock, commodity, currency). Options are mostly used for hedging, speculation, and income generation. Two Types of Options Call Option (CE): Right to buy at a chosen price. Put Option (PE): Right to sell at a chosen price.
NSE:RELIANCEEducation
by SkyTradingZone