Option Trading Software in India, Options Analysis Platform | Talkdelta (2024)

Options are the share market entities that are traded on the stock exchange. There are various financial segments in the share market, derivative is also one of these segments. Derivatives are essentially financial contracts that derive their value from an underlying entity or asset. The underlying asset can be any of the stocks, commodities, currencies, indices, exchange rates, or even interest rates. With derivatives, option trader make profits by predicting the future price movement of the underlying asset.

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The Basic principle behind entering into derivative contracts is to earn profits by speculating on the value of the underlying asset in the future. Options trading is one of the types of derivatives. In this article, we are going to see how option trading in India happens. Also will discuss some option trading strategies. Once you get familiar we will further be going to tell you about option trading software India and various option trading platform India.

Here we have explained some strategies. These strategies are also used by option trader for option trading in India as well.

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1. Covered Call

The covered call option strategy is very popular among long-term stock investors because it can reduce the loss potential on the shares. It can create a stream of income on those shares.

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2. Married Put

A Married put which is one of the option trading strategies is also called a protective put. It is when you combine a long put option against at least a hundred shares of stock in an attempt to completely reduce or eliminate the risk of a long stock position below a certain price.

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3. Bull Call Spread

The bull call spread option strategy is a strategy that profits when the stock price increases and it is one of the four vertical spread option strategies.

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4. Bear Put Spread

The bear put spread option strategy is a bearish strategy that profits when the Stock price decreases but has a limited loss potential when the stock price increases.

5. Protective Collar

The collar is the combination of a long stock position, a short call position, and a long Put position.

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6. Long Straddle

The long straddle strategy profits when the stock price makes a significant movement in either direction or when implied volatility increases. Buying straddles or sometimes referred to as a long straddle is among the option trading strategies constructed by buying a call and put option at the same strike price and in the same expiration cycle.

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7.Long Strangle

The long strangle is an options trading strategy that profits from a large movement in the stock price in either direction. If the stock price moves significantly to the upside or downside the long strangle will be a good strategy.

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8. Butterfly Spread

Butterfly spread can be constructed with either all calls or all puts and depending on which option type you use.

9. Iron Condor

The iron Condor can be market neutral meaning that you do not have to pick a specific stock price movement in order.

10. Iron Butterfly

The long iron butterfly is also a popular strategy amongst various option trading strategies essentially a way to buy a straddle at a reduced cost but with that comes less profit potential as well.

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So as far now you have got familiar with the teen option trading strategies. By using these option trading strategies in India you can achieve excellent hedging and maximize the profit of your portfolio