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Which is best call or put

Others 484 views 6 replies
Which is good to trade call or put in bank nifty ?
Replies (6)
Both are good but you need to plan when and why , which position has to be taken
Depends on market situation
Use hedging through ETF and you may plan for Call writing

Buyers with call options get the right but are not mandated to purchase securities at pre-decided quantity, a specific date or strike price. Conversely, those investors having put options will have the right to sell securities at the strike price for a future expiry date. They can specify the quantity too. So, both put and call options have their own share of risks. It depends on the strategies followed, conviction of a trader and the risk appetite to choose a suitable one. One can analyse the put call ratio delta, theta values and implied volatility to arrive at conclusions. You can access such crucial indicators trading platforms of renowned firms IIFL Securities, among several others.

For more information visit:-  https://www.indiainfoline.com/markets/derivatives/put-call-ratio

There is nothing big about both of them. 

Call= premium + exercise price must be lower than spot stock price of the asset to make a profjt

Put = premium - exercise price must be higher than spot stock price of the asset to make a profit. 

I dont see anything important as its a derivative to reduce risk, people can trafe safely 

Generally Call / put can be used for hedging purposes but now a days people are trading for profits .

If you expect that market goes up then you can buy a call / write a put .

If you expect that market goes down then you can buy a put / write a call .


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