FREE Account Opening + No Clearing Fees
Loading...

How to decide on whether should I buy or sell Call or Put options?

asked

Open an Instant Account with Zerodha

Your decision to buy/sell call or put options should depend on your market outlook. If you think the market will do well this month, you should consider a BUY call option or SELL put option. If you think the market will fall this month, then a 'SELL put option' and a 'BUY call option' would be the right move.

In addition to personal research, traders should also keep an eye on current events, the announcement of financial results, major budget or war news, etc., as these can serve as an important factor in determining a stock trend.

answered


3 Comments

3. Suhas Shivalkar   I Like It. |Report Abuse|  Link|April 23, 2022 2:09:41 PMReply
Surprising. That even after readers have suggested to correct the mistake and so many days have passed, no correction is made.

It seems Chittorgarh staff has government servant mentality.

Regards.
2. Deepak Shridhar Ayare   I Like It. |Report Abuse|  Link|February 28, 2020 3:47:36 PMReply
I think there is some confusion here.. need correction...in both cases you have give same activity..

If you think that the market will do well this month then you should consider 'BUY Call Option' or 'SELL Put Option'. If you think that the market will fall this month then 'SELL Put Option' and 'BUY call Option' would be the right move.

2.1. Atishya Gupta   I Like It. |Report Abuse|  Link|October 23, 2021 12:15:15 PM
According to me, it will be:
If you think that the market will do well this month then you should consider 'BUY Call Option' or 'SELL Put Option'. If you think that the market will fall this month then 'BUY Put Option' and 'SELL call Option' would be the right move.
1. Laxmi Narayana Udyavar   I Like It. |Report Abuse|  Link|July 21, 2021 3:55:34 AMReply
Explanation given for both option is same. it cannot be , editor need to rectify the message.


List of all questions Ask your question


More Options Trading Basics Questions...

  1. How do options work?
  2. What are the different types of options?
  3. What is the strike price of an option?
  4. What is the Expiration Day of Options?
  5. How do I trade options?
  6. What is the difference between futures and options?
  7. How is Nifty traded?
  8. What happens if an option expires out of the money?
  9. Is there any Margin payable in Options?
  10. How does options settlement work?
  11. What are Covered Options?
  12. What are Naked Options?
  13. What is an American Option?
  14. What is an European Option?
  15. What is In-The-Money (ITM), At-the-money-option (ATM) and Out-of-the-money-option (OTM) in Options?
  16. How to decide on whether should I buy or sell Call or Put options?
  17. Can I trade on options of any stock or Index?
  18. What is the difference between square off and exercise an Option?
  19. What is intrinsic value of the option? How to calculate intrinsic value of an option?
  20. What is time value of an Option?
  21. What are moving averages in options trading?
  22. What is Assignment in Options?
  23. How are options different from futures?
  24. What are the factors that affect the value of the premium of an Option?
  25. What are different pricing models for options?
  26. How the premium paid on options is calculated?
  27. What are Option Greeks and its use in Option trading?
  28. What is shorting/writing/selling in Options trading?
  29. I have bought an option & paid the premium for it, how to settle it?
  30. Do Option buyers have the same rights that as stock buyers?
  31. What is the contract cycle for Options in India?
  32. How does the probability of price movement affects the price of an option?
  33. What is the difference between trading stocks versus options?
  34. What is open interest and volume in options?
  35. What is the options market?
  36. What is nifty futures and options?
  37. What is an option trade?
  38. Is binary options trading legal in India?
  39. What are different types of exotic options?
  40. How to trade nifty Options intraday?
  41. Can I trade in US options from India?
  42. What are options trading hours in India?
  43. What is NSE option expiry time?
  44. Can I buy/sell Options in pre-market trading session?
  45. What is call & put option in bank nifty?
  46. What is the difference between selling a call option and buying a put option?
  47. What is NSE F&O lot size?
  48. What are options trading advantages?
  49. What is options trading after hours?
  50. What are options trading charges?
  51. What are options trading exchanges in India?
  52. What is the difference between options trading and Forex trading?
  53. What is the difference between options trading and stocks trading?
  54. What is the minimum amount required for Options trading?
  55. What are Index Options?
  56. What are weekly Options?
  57. What are Long Dated Options?
  58. How to identify if a particular option contract is American or European style?
  59. What are Option contract adjustments?
  60. Why The Intrinsic Value Of Options Contracts Can Never Be Negative?

List of all questions Ask your question