Options Basics - PR Sundar

• If Nifty is trading at 12500, Some Believe it will go up, they ==buy== CALL OPTION, They make money if the market go up.
• Some believe it will go down they will ==sell== CALL OPTION.
• Betting works 50-50, Option market is NOT 50-50.
  • eg: In Options,
    • BET : Call = V Kohli will hit 100,
    • Buyer = Yes
    • Seller = No
    • Bet amount = ₹ 10/-
    • Buyer Buys Call Option i.e. gives ₹10 to Seller
    • Scenario 01 : Score < 100
      • Seller keeps the ₹ 10.
    • Scenario 02 : Score > 100 eg : 134
      • Seller gives ₹ 34 to buyer.
• Risk/Reward different.
• Buyer max loss = ₹ 10/-
• Seller max loss = Infinite
  1. Strike Price : 100 Runs
  2. Premium : ₹ 10
  3. Expiry : Time

==Expiry usually, LAST THURSDAY EVERY MONTH.==

In CALL Option

• Seller claims it stay under the amount, hence sell call option. ( Gets Money initially from the buyer & Pays the amount increased. ) ( Under 🩲)
• Buyer feels go beyond amount, hence buy call option. ( Pay Money ) ( technically, price could go to infinity ♾️)

In PUT Option

• Seller claims nifty stays above the strike price, hence sell put option. ( Gets Money initially & Pays the amount increased. ) ( Over 🧥 )
• Buyer feels go beneath amount, hence buy put option ( Pay Money ) ( trivia : Buffet said he will buy a PUT on bitcoin) ( technically, price could come to zero 0️⃣ )

• Don’t start option selling if you have less than 25 Lakhs.
• 10-15 Lakhs also sufficient, for good traders.
• PR Sundars classes are expensive.
• For people with 1 to 3 Lakh : Ironed Collar Options Strategy can be used.
• 🔎Search “Collar Option Strategy”.
• [[Put vs Call]]

Successful people don’t do different things, they do things differently.

*🏷️Tags : #Investments💷/Options-Trading🎛️ #🧔PRSundar *📚Reference : PR Sundar Option Basics Playlist 3 Videos