Is it safe to trade on Nifty Options?

If you have a good capital go positional only if your strategy is accurate and market supports you then you might get a profit in intraday only. It’s better to do the trades in any scripts rather then the index like nifty, bank nifty. As it is very much risky.

How much one can earn in Nifty Options?

In options trading losses are limited but profits are unlimited. Limited means if you invest Rs10000 maximum loss is that amount. Profits may be even Rs. 30000 or more.

When can I buy CE and PE?

Whenever in any stock bullish (long) buy a contract called CE (call option). When you are buying a call option it will give you the right to buy the underlying asset at the strike price within the stipulated time period. Whenever in any stock bearish (short) sell a contract called PE (put option).

What happens if I sell a call option?

Selling a call option The call seller will have to deliver the stock at the strike, receiving cash for the sale. If the stock stays at the strike price or dips below it, the call option usually will not be exercised, and the call seller keeps the entire premium.

How do you profit from a call option?

A call option writer stands to make a profit if the underlying stock stays below the strike price. After writing a put option, the trader profits if the price stays above the strike price. An option writer’s profitability is limited to the premium they receive for writing the option (which is the option buyer’s cost).

What happens when you buy a call option?

When you buy a call, you pay the option premium in exchange for the right to buy shares at a fixed price (strike price) on or before a certain date (expiration date). Investors most often buy calls when they are bullish on a stock or other security because it offers leverage.

What happens if we don’t sell options on expiry?

If you don’t sell your options before expiration, there will be an automatic exercise if the option is IN THE MONEY. If the option is OUT OF THE MONEY, the option will be worthless, so you wouldn’t exercise them in any event.

Can I lose money on a call option?

If the stock finishes between $20 and $22, the call option will still have some value, but overall the trader will lose money. And below $20 per share, the option expires worthless and the call buyer loses the entire investment.