Long Call Option Strategy
The most basic and commonly implemented option strategy is the Long Call Option Strategy. When to use: When you are Bullish and anticipate the stock / index to rise. How it works: Suppose, you are bullish on Tata Motors stock on 16th August 2013, when the share trades at Rs. 319. You buy a call option at a premium […]
Short Call Option Strategy
When to use: When you are Bearish and anticipate the stock / index to fall. How it works: Suppose, you are bearish on ITC Limited stock on 16th August 2013, when the share trades at Rs. 324. You sell a call option (also called writing a call option) for a premium of Rs. 20, expiring 26th September 2013 with a […]
Long Put Option Strategy
A basic and commonly implemented option strategy is the Long Put Option Strategy When to use: When you are Bearish and anticipate the stock / index to rise. How it works: Suppose, you are bearish on ICICI Bank stock on 16th August 2013, when the stock trades at Rs. 830. You buy a put option at a premium of Rs. […]
Short Put Option Strategy
When to use: When you are Bullish and anticipate the stock / index to fall. How it works: Suppose, you are Bullish on ONGC stock on 16th August 2013, when the stock trades at Rs. 265. You sell a put option (also called writing a put option) for a premium of Rs. 5, expiring 29th August 2013 with a Strike […]