There are two types of options: the call option and the put option. You can be a buyer or seller of these options. Depending on what you choose to do, the profile P&L changes. Of course, we will enter the P&L profile at a much later stage.
For now, let's understand what “The Call Option” means. In fact, the best way to understand the call option is to first deal with a tangible real-world example, once we understand this example we will extrapolate the same to the stock markets. The stock market may be the toughest place in the world to make easy money, especially in trading options strategies. On whether writing options is likely to make greater profits, Zerodha founder and CEO Nithin Kamath said in a tweet that it is possible, but only when the risk is compared to buying options.
How do I set the stop loss? I have brought options in normal order and it is in profit, but I want to track the stop loss so as not to lose profits in case the market turns, so how do I put the stop loss in this scenario? How do I set the stop loss after I have brought options? Similarly, if Bajaj Auto traded in 2025 on the day of maturity, the intrinsic value of the option would be —. I wouldn't exaggerate if I said that almost 80% of the derivatives traded are options and the rest is attributable to the futures market.
