Options trading is where fortunes are made and lost in Indian markets. This guide cuts through the jargon and gives you actionable knowledge.
Understanding the Basics
An option is a contract that gives you the right (not obligation) to buy or sell an underlying asset. In India, Nifty 50 and Bank Nifty options are the most liquid.
Your First Strategy: Bull Call Spread
Buy an ATM call, sell an OTM call. This limits both your risk and reward, making it perfect for beginners. Max loss = premium paid.
Risk Management
Never risk more than 2% of your capital on a single trade. Use stop losses religiously. Paper trade for at least 3 months before going live.
