Options Trading Strategies ModuleExchange-traded options form an important class of derivatives which have standardized contract features and trade on public exchanges, facilitating trading among investors. They provide settlement guarantee by the Clearing Corporation thereby reducing counterparty risk. Options can be used for hedging, taking a view on the future direction of the market or for arbitrage. Options are also helpful for implementing various trading strategies such as straddle, strangle, butterfly, collar etc. which can help in generating income for investors under various market conditions.
This module is being introduced to explain some of the important and basic Options strategies. The module would be of interest to traders, investors, students and anyone interested in the options markets. However, it is advisable to have a very good knowledge about the basics of Options or clear the NCFM Derivatives Markets (Dealers) Module before taking up this module. There are 22 Options strategies covered in this module and the tests are based on these 22 strategies.
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