Best Options Trading Strategies Every Trader Should Know
With the growing popularity of options trading in India, more people have started to join this exciting world of options trading. It is a form of derivative contract which gives you an opportunity to buy or sell an underlying asset at a certain price at a set date in the future. Options can be used as hedges against stock positions or as speculative plays. Options can also be used for income generation by selling short-term option positions with borrowed funds. To get detailed information about options trading, talk to our experts - 0120 4400700 12 Options Trading Strategies 1. Bull Call Spread A bull call spread is an option strategy that consists of purchasing a call option and selling another call option of the same type with a higher strike price. The difference between the two strikes is the net credit received when selling the options, which is used to purchase more options with a lower strike price. The maximum profit potential on this strategy occurs when ...