Options and futures are both financial products investors can use to make money or to hedge current investments. Both an option and a future allow an investor to buy an investment at a specific price by a specific date. But the markets for these two products are very different in how they work and how risky they are to the investor.
If you want to trade in this segment, it is very important that you understand them from the basics. People come to this segment with just hear and say information. They trade because investment required is less but they don’t understand the risk is unlimited in this segment.
A person who wish to trade this segment should know the nature of each instrument in this segment like – what is call option or put option? What is exercising the option? What happens to Call / Put Premium when stock price goes up or down? What are the factors which affects option premiums etc….
We will help you understand this in our workshop – “Basics of Futures and Options”. Content of this workshop will be:
- What is Derivative?
- Definition and the nature of the instruments in derivative segment.
- Futures Basics
- Call / Put Option and their behaviour
- Terminologies like – Open interest, strike prices, ATM / ITM / OTM, Option Chain
- Payoff profile
- Premium Calculation
- Basics of Option Greeks