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Options trading is trading of option contracts of the underlying Connect or stock. An option contract gives the trader the right (not obligation) to buy or sell an index or stock at a Strike Price on or before an Expiry Date. There are two types of option contracts 8211 8216Call Option8217 and the 8216Put Option8217.

What is a Call Option. A call option is a type of contract that gives a trader the right to buy the underlying index or stock (eg. Nifty or Tcs) at a specific price called 8221 Strike Price8221 on home before a specified date known as 8220Expiry Date8221 (Every last Thursday of the month in NSE).

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