Call Option

Today Bank Nifty Stocks Option Calls Tips

Nifty 50 - NIFTY Option Call Expiry 30 June 2016 strike price 8200 Buy above: 105.06 Targets: 107.59, 110.19, 112.83 Stop loss: 102.52. Nifty Bank - BANKNIFTY Option Call Expiry 30 June 2016 strike price 18000 Sell below: 42.52 Targets: 42.41, 42.27, 42.14 Stop loss : 42.66. State Bank of India - SBIN Option Call Expiry 30 June 2016 strike price 210 Buy above: 9.46 Targets: 9.46, 9.47, 9.48 Stop loss : 9.45.
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Option Strategy: Bull Call Spread

When Option trader thinks that the underlying stock price moved up moderately in near term. It is implemented by buying an at the money call option while simultaneously writing a higher striking out of the money call option of same underlying security and the same expiration month. Maximum profit achieved when the price of underlying is greater than or equal to the strike price of the short call. Maximum loss occurs when the price of underlying is less than or equal to the strike price of the long call.
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Option Terminology

Index Options: The underlying are Index such as Nifty, Bank Nifty, CNX IT etc. Stock Options: A stock option contract gives the holder the right to buy or sell the underlying shares at specified price. The buyer of an Option is the one who buys the right but not the obligation to exercise his option on the seller/writer after paying Option premium. Writer / seller of a call/put option is the one who receives the option premium and is thereby obliged to sell/buy the asset if the buyer exercise on him. Call Option gives the holder the right but not the obligation to buy an asset by a certain...
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