Part 1 Master Candle Stick Patterns

What Are Options?

Options are financial derivatives that give you the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (called the strike price) on or before a certain date (called the expiry).

There are two main types:

1. Call Option

A Call Option gives you the right to buy the underlying asset at the strike price.

You buy a call when:

You expect the price to rise.

You want limited risk but unlimited profit potential.

2. Put Option

A Put Option gives you the right to sell the underlying asset at the strike price.

You buy a put when:

You expect the price to fall.

You want to hedge against downside.

In India (NSE), the underlying asset can be:

Index (Nifty, Bank Nifty, Fin Nifty)

Stocks (Reliance, TCS, HDFC Bank, etc.)