Lesson-1: Options in the Stock Market

Call Put tips blog” is intended to offer Call put trading tips and strategies in a lucid manner that help traders especially beginners for their successful in the trading. Visit this blog on daily basis, so that you will get best advice to improve your trading style and how to invest your money as short term investing in derivative stocks of Indian capital market NSE and BSE. Call Put tips gives proper insight and recommendations on stocks and provides accurate tips for traders regularly. This Call Put Tips provider is having a team of eminent researchers and technical analysts providing highly selected potential Option tips and strategies on stock after evaluating the market conditions.  

Options are short-term derivative contracts that permit an investor to reduce the risk and afford a better chance to get profit from stock market investments. It is an agreement between a buyer and a seller.

There are two kinds of options viz ‘Calls’ and ‘Puts”. Call Option is the right to buy 100 shares of stock for a determined price during a fixed period of time. By possessing a call option it has the right to buy the stock, but not an obligation. The option holder also has the liberty to do nothing, whereas the Put Option has the right to sell 100 shares of stock for a fixed price in the specified time.  The option buyer gives a premium to the seller. For getting the premium, the seller allows specific rights to the buyer thereby accepting the specific obligations.

Call holders & put holders (Buyers) are not obligated to buy or sell. They have the selection to use their rights if they choose. Call writers & put writers (sellers), on the other hand, are obligated to buy or sell. It implies that a seller may be needed to make good on a promise to buy or sell.

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