Option is basically a derivative product which value is the derived from its underlying asset. Option premium has intrinsic value which is said to be real value and time value which gets melted as its closer to the Expiry.
Strike:
Option is basically a derivative product which value is the derived from its underlying asset. Option premium has intrinsic value which is said to be real value and time value which gets melted as its closer to the Expiry.
Option Nature:
There are two types of options call option (CE) and put option (PE) you have option buying and option selling, as an option buyer when you think the market is going to go up, then you can buy an CALL option and if think the market can go down than you can buy PUT option but while trading in option buying you need to catch the right momentum into the market by which you can make profit but still based on various factors of your strategy, you can make a profit but when you Trading directional trading you should have a good technical analysis knowledge.
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