OPTIONS TRADING For Beginners FULL COURSE in Hindi | Option Trading kaise karte hain | Live Trading

Introduction

This tutorial provides a comprehensive guide on options trading for beginners, inspired by a full course presented in Hindi. It covers essential concepts, strategies, and practical applications of options trading, helping you to understand how to trade options effectively.

Step 1: Understand What Options Are

• Definition: Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific timeframe.
• Why Choose Options Over Stocks:
  • Leverage: Control a larger position with a smaller investment.
  • Flexibility: Options can be used for various strategies, including hedging, speculation, and income generation.

Step 2: Learn About Options Contracts

• Components of Options Contracts:
  • Underlying Asset: The asset that the option gives you the right to buy or sell.
  • Strike Price: The price at which the option can be exercised.
  • Expiration Date: The date by which the option must be exercised.
• Types of Options:
  • Call Options: Give the right to buy the underlying asset.
  • Put Options: Give the right to sell the underlying asset.

Step 3: Explore Call and Put Options

• Call Options Explained:
  • Used when you expect the price of the underlying asset to rise.
• Put Options Explained:
  • Used when you expect the price of the underlying asset to fall.

Step 4: Understand Option Pricing

• Key Terms:
  • Spot Price: Current market price of the underlying asset.
  • Premium: The price paid for the option.
• Price Calculation:
  • The option price is influenced by the underlying asset's price, time to expiration, and volatility.

Step 5: Familiarize Yourself with Option Expiry

• Expiry Basics: Options have a limited lifespan and must be exercised before expiration.
• Importance of Expiry Day: Options can become worthless after expiration, so timing is crucial.

Step 6: Learn About ITM, ATM, and OTM Options

• Definitions:
  • ITM (In The Money): Options that have intrinsic value.
  • ATM (At The Money): Options where the strike price is equal to the underlying asset's price.
  • OTM (Out Of The Money): Options that have no intrinsic value.

Step 7: Understand Option Greeks

• Key Greeks:
  • Delta: Measures the sensitivity of an option's price to changes in the underlying asset's price.
  • Gamma: Measures the rate of change of delta.
  • Theta: Measures time decay of options.
  • Vega: Measures the sensitivity to volatility.
  • Rho: Measures sensitivity to interest rate changes.

Step 8: Analyze the Option Chain

• What is an Option Chain?: A listing of all available options (calls and puts) for a given underlying asset.
• Open Interest: Indicates the number of outstanding contracts. Higher open interest suggests more liquidity.

Step 9: Implement Basic Strategies

• Option Selling: Involves selling options to earn premium income.
• Common Strategies:
  • Long Call: Buying a call option expecting the price to rise.
  • Long Put: Buying a put option expecting the price to fall.
  • Bull Call Spread: Buying a call option and selling another at a higher strike price.
  • Bear Put Spread: Buying a put option and selling another at a lower strike price.

Step 10: Engage in Live Trading

• Practice with Live Examples: Use platforms like Angel One for real-time trading practice.
• Start Small: Begin with small trades to understand market dynamics without risking significant capital.

Conclusion

Options trading offers various opportunities for profit but requires a solid understanding of concepts and strategies. Start with the basics, practice with live trading, and gradually explore more advanced strategies. As you grow more confident, consider diversifying your trading techniques. Always remember to manage risk and consult with a financial advisor if needed.