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Call Option

Call option gives the trader the right to buy the option of an underlying security from the writer for certain number of fixed shares (as per the lot size) at certain price of an expiry contract. CE option is available for all the stock which are available in future contracts. These are classified in to index and stocks. In index, all the index scrips contains call options like nifty, bank nifty etc and in stocks, companies like reliance, icici bank, tata motors which are in futures contain this type of option.

Features of this article:

Every call option rise with respect to its spot and future price.
These falls with respect to its spot price.
Call options are best suitable to buy when markets are bullish.
These are best suitable to short when stock markets are bearish.
These are hedged with Nifty short positions to reduce risk appetite.

Posted By: Pankaj                 Posted on: 2016-07-23 10:40:02                 Updated on: 2016-07-23 10:40:02