Explain carefully the difference between selling a call option and buying a put option


This information is highlighted in the red box. In practical trading world, is all trades on Options done on premiums? Traders can consider going long on Reliance Communication and Mcleod Russel India for intraday purpose as these stocks have attracted bullish bets. If fact, for the option buyer to be profitable the market should move away from the selected strike price. After three days I find that the premium for the same call has moved to Rs.

So if 8 becomes 16, then you are looking at a loss of 8 and not a profit of 8. Here is the article — http: December 27, at Have explained this in detail, request you to read through the chapters.

Thanks Karthik for reply, but i am still not clear with point number 1. They do not really wait for the options to expire. Sorry karthikthat was a wrong doubt i posted above. September 5, at 5:

Even if we r there we may miss the trade id doing some thing else at the time we are suppose to trade or squareoff the tyrade. Futures Trading 12 chapters 5. Now sure which data points you are talking about. July 10, at 8: Moves like this should not surprise you.

They are very similar with very little difference I guess. This information is highlighted in the red box. Not working for me having tried all troubleshooting.

Of course there is an angle of volatility here which we have not discussed yet; we will discuss the same going forward. December 27, at 7: This is to emphasize that both these option variants make money only when the market is expected to go higher.

April 17, at 7: July 9, at 8: The maximum loss of the call option buyer is the maximum profit of the call option seller. This translates to a sweet Rs. Sir where can we find historical call and put data for contracts that has already expired, say for the past one year?