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...
#SHARDAMOTOR (DAILY CHART) RATIONALE: AUTO SECTOR IS IN BULL RUN SINCE COUPLE OF WEEK , WE HAVE SEEN QUITE GOOD UPSIDE MOVES IN M&M , TVS MOTORS, BAJAJ AUTO AND HERO MOTOR CORP IN RECENT TRADING SESSIONS SHARDAMOTOR STOCK PRICE , ALSO IN UPTREND IN LINE WITH AUTO SECTOR UPSIDE MOMENTUM . AS PER TECHNICAL CHART STOCK HAS GIVEN POSITIVE BREAK OUT FURTHER WITH UPPER PRICE RANGE STOCK HAS GIVEN NEW BREAK IN POSITIVE CONTINUATION TREND, CONSIDERING RSI POSITIVE AND GOOD VOLUME BUILD UP WE CAN EXPECT PRICE TARGET OF 1500/1600+ IN COMING MONTHS SOON . CLICK FOR DISCLAIMER