Long Call

Option trading strategies for stocks that are rising

The benefit of stock options trading is that it requires less money than buying stocks. second thing for any stock option is that a stock may rise upward in price by 1% and the same price movement will cause the option to rise in price by 10%. In stock options trading the traders can make money when stocks price rise without buying the shares. Buying Call Option ... A Call Option gives the right but not obligation to buy shares of a stock at a specified price on or before the expiry date. [caption id="attachment_2286" align="alignleft" width="196"]         Long Call ; Buying call [/ca...
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Option Strategy: Protective Call/Synthetic Long Put

If investors are of the view that market will go down or bearish but want to protect against an unexpected rise in the price of the stock. Suppose XYZ Ltd is trading at Rs 4457 in January. An investor Mr. A buys a Rs 4500 Call Option for Rs 100 while shorting the stock at Rs 4457. The Net credit of investor is Rs 4357 (Rs 4457- Rs 100). Strategy: Short Stock + Buy Call Option Risk is Limited  Maximum Risk(Rs 143) = Call strike Price (Rs 4500)- Stock Price (4457) +100. Rewards= Maximum is stock price-call Premium. Other Option Strategies Long Combo: Sell a Put, Buy a Call Covered C...
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