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Part 6 Institutional TradingBull Call Spread (Debit Spread) You buy a call at a lower strike price and sell a call at a higher strike price with the same expiration. This reduces the cost of the trade but caps the profit. Setup: Buy Call (Lower Strike) + Sell Call (Higher Strike). Profit Potential: Limited (Difference between strikes - net debit paid). Risk: Limited to the net debit paid. When to use: You are moderately bullish but want to reduce the cost of entering the trade compared to a straight long call.
NSE:NIFTY
by SkyTradingZone
Part 2 Ride The Big Moves Key Terms Every Trader Must Know 1. Strike Price The price at which you can buy/sell the asset via the option. 2. Premium The cost of the option. When you buy options, you pay premium. Sellers receive premium. 3. Expiry The date on which an option contract ends. Index: Weekly expiry Stocks: Monthly expiry 4. ITM, ATM, OTM These terms tell you how close the strike is to the current market price (spot price). ITM (In the Money): Intrinsic value exists ATM (At the Money): Strike ≈ Spot OTM (Out of the Money): No intrinsic value 5. Lot Size Options are not traded in single units but in predefined quantities (ex: NIFTY = 25 units).
NSE:BANKNIFTYEducation
by SkyTradingZone
Part 2 Intraday Institutional Trading1. Long Call (The Bullish Bet) This is the most straightforward strategy for a trader who expects a stock to skyrocket. Setup: Buy a Call Option. Market View: Bullish. Risk: Limited to the premium paid. Reward: Theoretically unlimited (as the stock price can rise indefinitely). The Catch: The stock must rise enough to cover the cost of the premium and beat time decay (Theta). If the stock stays flat, you lose money. 2. Long Put (The Bearish Bet) Used when you expect a sharp decline in the asset. Setup: Buy a Put Option. Market View: Bearish. Risk: Limited to the premium paid. Reward: Substantial (as the stock price drops toward zero). The Catch: Similar to the long call, time is your enemy. You need a significant move down to profit.
NSE:NIFTYEducation
by SkyTradingZone
Part 5 Option Trading Strategies The Foundations of Options Before diving into complex strategies, we must establish the building blocks. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. The Two Core Types Call Option: Gives the holder the right to buy shares. You generally buy calls if you are bullish (think the price will rise). Put Option: Gives the holder the right to sell shares. You generally buy puts if you are bearish (think the price will fall).
NSE:INFYEducation
by SkyTradingZone
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