Options Trading

Option Pricing – The Factors Affecting Option Prices

Option Price involves two components – Intrinsic Value and Option Premium.Option Premium is the value we get by subtracting the Intrinsic Value of an Option from the Current Market Price of that particular Option. Only In-the-Money Options have Intrinsic Value (explained below).Time Value of Option and Uncertainty in …
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Option Trading Strategies For Bullish Traders

Bullish Traders are the ones who have positive view on the markets or an underlying security for the coming days.They expect prices of these securities to move higher.The aim of traders is to utilise this up move to make money by trading Options. You can use various Option …
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How to Find a Cheap Option in Option Trading

Options are a low risk trading tool.In Derivatives or Futures & Options segment. They carry significantly lower risk as compared to Futures Trading. This is because in Options Trading,you can not loose more than the ‘Premium’ you pay to buy an Option.Here your reward or profit potential is …
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Is Writing Options Profitable

You might be well aware that Options are capable of giving unlimited gains with limited risk if you are in the business of market trading for quite some time.For that,you need to buy an Option.If you have a bullish view for the underlying,you can buy a Call Option.Bearish …
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