You might have heard the experts say “Trade with a stop loss”, “Define your target profits” etc. When you trade stocks, it is quite difficult to set the profit targets & the stop loss simultaneously. Options trading solves that! If your research says go bullish, then we can deploy a strategy called Bullish Debit Spread….
Before we discuss the options strategies, I felt we must learn the importance of a good research. Research here means the homework required to know if we need to buy or sell a stock. The reasons to buy or sell a stock could be technical, fundamental, supply/demand etc. You need not be an expert analyst…
CALLS and PUTS are like the left and right wings of a stock – Since HDFCBK is at 1450, it has a CALL option valued at Rs15.95 and PUT option valued at Rs14.7 When the price of the HDFCBK stock goes up, the value of the CALLS will appreciate and the PUTS will depreciate. Similarly,…
