Bank nifty tips - 02 June 2020
We have updated bank nifty levels for tomorrow on our official website
Terminology in option trading
Option Strike Price A strike price is set for each option by the seller of the option, who is also called the writer. When you buy a call option, the strike price is the price at which you can buy the underlying stock if you want to use the option. For example, if you buy a call option with a strike price of 500, you have a right, but no obligation, to buy that stock at 500 It is worthwhile to do so if the underlying stock is trading above 500. In this case, you can also sell the call for a profit. The profit is approximately the difference between the underlying stock price and the strike price. Alternatively, you can use, or exercise your option and buy the stock at 500, even if it is trading at 550 on the stock exchange. When you buy a put option, the strike price is the price at which you can sell the underlying asset. For example, if you buy a put option that has a strike price of 500, you have the right to sell that stock at...
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