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...
As MENTIONED IN NIFTY VIEW ARTICLE ON 24.03.2025 : Accordingly, nifty has reclaimed 23650+ level after 1000-1200 point downward move after touching the resistance level near 23800 on 25th Marc h. Stocks in Positive breakout ; which suggests this stock may see accumulations at dip and go further up side gradually. 1 ) INDIGO (INTERGLOBE AVIATION LTD) (5344) INDIGO RATIONALE: STOCK TRADES at 5347 near level of swing previous high , stock has formed Higher-high , Higher - low price pattern in 1 hour chart , although Relative strength indicator suggests strength in positive move supports the momentum for upside continuation. Strategy: buy at dip Hence, stock expected to move towards 5550 /5670 in upcoming trading sessions , as a buy at dip strategy stock may be accumulated up to 5150 with stoploss of 5000 on closing basis Disclaimer & Disclosur...