Trading Master Class With ExpertsDirectional Strategies
These are for traders with a clear market view.
Long Call (Bullish)
When to Use: Expecting significant upward movement.
Setup: Buy a call option.
Risk: Limited to premium paid.
Reward: Unlimited.
Example: NIFTY at 20,000, you buy 20,100 CE for ₹100 premium. If NIFTY closes at 20,500, your profit = ₹400 - ₹100 = ₹300.
Long Put (Bearish)
When to Use: Expecting price drop.
Setup: Buy a put option.
Risk: Limited to premium.
Reward: Large if the asset falls.
Example: Stock at ₹500, buy 480 PE for ₹10. If stock drops to ₹450, profit = ₹30 - ₹10 = ₹20.
Covered Call (Mildly Bullish)
When to Use: Own the stock but expect limited upside.
Setup: Hold stock + Sell call option.
Risk: Stock downside risk.
Reward: Premium income + stock gains until strike price.
Example: Own Reliance at ₹2,500, sell 2,600 CE for ₹20 premium.
