Risks, Price Factors, and Market-Condition-Based Strategies for Retail Investors 1. What Is an Option? An option is a financial derivative that derives its value from an underlying asset such as a stock or index (NIFTY, BANKNIFTY, SENSEX). An option contract gives: the buyer the right (not obligation) the seller the obligation to buy or sell the underlying asset at a pre-defined price (Strike Price) on or before a specified expiry date . Types of Options: Call Option (CE) – Right to buy Put Option (PE) – Right to sell Options are traded for hedging, income generation, and directional views , but they carry significant risk , especially for uninformed participants. 2. Key Risks in Options Trading Options are not suitable for all investors . The primary risks include: a) Time Decay (Theta Risk) Option value erodes with time. If the market does not move in your favour, the premium can decay rapidly , especially near expiry. b) Volatility Risk Option price...
#nse#stockmarketlive#stockmarket#banknifty#mazdock RATIONALE: S tock has been in bullish trend since last 2 month with range break out of price level 850-870 decisively, with high Volume buildup and started trading above 850-870. There has been consistent buying interest from the investors since last month, Further stock now trading with new high , with strong bullish candle formation on daily chart, With over all Higher- High , Higher -low pattern ,stock may be in Bullish trend. Relative Strength Index is positive , suggest positive trend may continue for near term continue to go bullish We may see 1550/1600/1750+ prices in months to come. Note live price may slight changed while publishing.