Suggest a Topic Analyst Badge
Add a Reply

Nifty Call Put

Nifty options are classified into two categories

Nifty call Option (Nifty call/Nifty CE)

Nifty put Option (Nifty put/Nifty PE)

Nifty Call Option:

Nifty call rises when nifty index rise and the price declines when index falls. Nifty call is denoted as Nifty CE in trading terminals. In nifty call put options too, the loss is limited with unlimited profit. Each lot consists of 50 shares in nifty options. As for other stocks, three expiries are available in this type of options too, current, next and far. Trader who has a good short term view on nifty index can purchase a next or far month call option and hold till respective month expiry for good returns.

Nifty Put Option:

Nifty put is often referred as Nifty PE in terminals. Behaviour of PUTS are inversely proportional to CALLS. Nifty put rises when index falls and nifty put declines when index rises. This is no way exceptional with respect to lot size, expiry or calculation. As said above, if one has a strong view of nifty index to fall in near future, he might opt for nifty PUT for maximum returns.

Advantages of trading in nifty call put when compared to other stocks:

High volumes in Nifty call put options
Easy to predict nifty index
Less chance of manipulation due to heavy volumes in nifty
No problem of liquidity in nifty call put
Easy break even possible while trading in nifty options

Posted By: Rajeev Srivastav                 Posted on: 2016-08-12 16:54:44                 Updated on: 2016-08-12 16:54:44