Understanding the Market Participants- The Call Buyer
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In the last discussion, we tried to understand the Options market from the point of view of the Call writer,…
Understanding the Market Participants- Call Writer
The Trader who enters into the options market can trade in two products- Calls and Puts. Within these two products,…
Margins and Leverage- An Introduction
Options, as we already know, are instruments for risk management, but at the same time, they can be as destructive…
Criterion for listing of Individual Stock Options
The National Stock Exchange, or the NSE henceforth, has been leading exchange with regards to derivatives. It provides both Index…
Options Expiry Dates
Derivatives, namely Options, Futures, Forwards and Swaps, are time bound instruments. Like we have already studied, they have an expiry…
Composition of Options Premiums
We have already understood that when we trade in options, we trade in premiums. Now this premium has two components-…
Options Payoffs
The payoff concerned with options different from that of conventional securities like common stock or shares, where the payoff is…
Basics about Options
In an introduction to Options, we must state that options are a type of derivatives. This leads us to the…