HDFC Bank Limited
Formazione

Part1 Ride The Big Move

90
Call Options vs Put Options
✅ Call Option (Bullish)
Gives you the right to buy the underlying asset at the strike price.

You profit when the price of the underlying asset goes above the strike price plus premium.

Example:
You buy a call on ABC stock with a strike price of ₹100, premium ₹5.
If ABC rises to ₹120, you can buy at ₹100 and sell at ₹120 = ₹15 profit (₹20 gain - ₹5 premium).

🔻 Put Option (Bearish)
Gives you the right to sell the underlying asset at the strike price.

You profit when the price of the underlying asset falls below the strike price minus premium.

Example:
You buy a put on XYZ stock with strike ₹200, premium ₹10.
If XYZ falls to ₹170, you sell at ₹200 while it trades at ₹170 = ₹20 profit (₹30 gain - ₹10 premium).

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