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...
Key Union Budget Announcements - 2025 ➡️ Transformative reforms in 6 sectors which will set trends for next 5 years: -Six sectors are: * Power * Mining * Urban developments (covers water sector) * Financial sector * Regulatory reforms * Taxation ➡️ Dhan Dhanya Krishi Yojna * Kisan Credit Card limits for farmers, fisherman etc. increased from 3 lakh to 5 lakh. * 6 year mission for pulses. * Agri plan to cover 100 districts with low productivity in phase 1. ➡️MSMEs -Focus on 5.7cr MSMEs * Increase loan guarantees to micro entrepreneurs. * Loans to startups in 27 focus sectors at 1% guarantee fees. * Term loans upto 20cr for export MSMEs * Customized credit cards for Udyam registered MSMEs * Fund of fund for startups, another 10,000 cr. to be setup ➡️ Credit guarantee cover will be enhanced from 2 cr to 5cr for MSME. Startups will have credit guarantee of 10cr to 20cr. Well run MSME: 20cr. ➡️ Micro enterprise will have 5lk limit of credit card. ➡️ Make India global hub for toys...