
Put Options are used when the Investors want to sell an Underlier. In this video, we discuss the nuances of Put Options.
When we buy Options, we can make an unlimited amount of profit. However, we can suffer a limited amount of loss as well. In this video, we discuss a strategy by which we can reduce the amount of loss that we make while also having the possibility to make a profit in all conditions.
Spreads is an Options Trading strategy where we lower the amount of loss that will be made at the compromise that the amount of profit that can be realized is also lowered.
Straddle's strategy for Options Trading is an expensive strategy. In this strategy, the Investor purchases a CALL option and a PUT Option. This strategy is used by Investors when the markets are volatile.
Risk Reversal is the last Options Trading strategy we discuss in this course. This is a strategy used by traders dealing in currency trade.
Trading in Options is risky but very rewarding. Trading in Options can generate a lot of revenue if the correct strategies are applied. This course discusses a number of strategies for trading options.
When trading in options, we do not hold the security (Securities could be Stocks, Bonds, or Commodities (like Iron, Gold, and Oil). Trading in Options is risky but very rewarding. Trading in Options can generate a lot of revenue if the correct strategies are applied. This course discusses a number of strategies for trading options.
When trading in options, we do not hold the security (Securities could be Stocks, Bonds, Commodities (like Iron, Gold, Oil, Natural Gas, etc.), Currencies, etc.). Instead, we use the securities as Underliers. We perform the trade using the underliers and take home the profit or loss.
Options Trading is not only performed by Investors in the Stock Markets. Instead, Options Trading is also performed by all Industries like Airlines, Manufacturing Industries, Farmers, Services Industries, etc. Industries face volatility in the prices of the materials essential for their operations. Such materials need to be either purchased by the Industries or sold by the Industries. A rise in the prices of the material required to be purchased and a fall in the prices of the material to be sold can severely impact the bottom line of the Industries. For example, the Farmer faces situations where the Farmer holds a large amount of produce from the farms and fears that the price of the produce may fall in the markets. To protect from such losses, the Farmers perform trades in options to profit from the options, offsetting the loss from the markets.
Options Trading is usually conducted for huge sums of money. There are possibilities for making unlimited profits. Also, there are possibilities for unlimited loss. It is thus important to know the right strategies so that the losses can be minimized and profits can be maximized. This course discusses techniques for an investor to reduce risk while trading options.
The course starts with explaining what options are and then discusses the strategies for trading options. The course explains every concept using detailed calculations and charts. The calculations precisely explain how investments need to be planned while trading options. The charts provide a visual aid to remember the concepts. Each lecture is followed by a quiz to solidify the understanding.
Partha Majumdar provides the course. Partha has been trading in the Indian Stock Markets since 1994. Currently, he is pursuing a Doctorate Degree in which he is investigating the Indian Stock Market from a data point of view. Partha has been working in the field of Investment Banking and has post-graduate degrees in Computational Data Sciences.