We know options are very less amount and high return objects in trading. There will be premium like example 50,100 etc between 0-999. No need to keep entire capital if you want to buy like in shares, Just broker will take 15% margin and it varies. generally options are hedging products which will be used as insurance for your holded stock. Buying Options - Buying options are very less amount required and there will be greeks like time delay and there is decay in premium daily up to 5-10%. Less risk unlimited profit. Selling options - Require more than premium and even if option wont move, You will be in profit due to premium erosion of 5-10% daily. Here Premium will be profit at end of expiry and loss unlimited. Here main reason for this post is to give you great working strategy or can be said as monthly income. Options Selling Hedging Strategy - Here you will sell out of the money option where you think stock wont cross in weekly or monthly expiry
Check latest news in India and articles about general topics, technology, stock market, movies etc