Options Trading
How options work, from the ground up. Derivatives, calls and puts, premiums and the risks, in plain language. Read the parts in order.
A step-by-step series on options for Indian traders and investors. It starts with what a derivative is, then builds up to how options work and the risks they carry. Read the parts in order.
Contents
- Part 1
Options Are Not a Lottery Ticket
Why 93% of retail options traders lose money — and the one thing options are actually good for.
- Part 2
What Is a Derivative, Really?
The foundation beneath futures and options explained with a litre of milk.
- Part 3
What Is an Index, and Why Does It Matter?
The Nifty 50, the Sensex, and how an index is actually built — the groundwork for trading index options.
- Part 4
Before You Trade Options, Build the Trader
The four traits that matter more than any strategy, and what an option actually is.
- Part 5
Buying a Call Option
Limited risk and unlimited reward sounds like every new trader's dream. Here's what you're really getting into.
- Part 6
Selling a Call Option: Better Odds, Unlimited Risk
The other side of the call buyer's trade: a limited profit, a better chance of keeping it, and a loss with no ceiling.
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