How much can we earn in option trading in India?


Options traders can earn profit by either buying or selling options. Options trading can give you profit possibilities during both high and less volatile moments of the market. This is possible because the prices of assets such as stocks, currencies, and shares are always fluctuating, and an options strategy can profit from this regardless of market conditions.

Intraday Options Trading in India

Intraday options trading involves buying and selling equities in a single day. All positions must be squared off before the market closes in intraday trading. Stocks are purchased not as an investment, but as a means to profit from the movement of the stock index. Intraday trading is a rapid way to benefit from the stock market, however, it is a bit dangerous.

Here you can easily buy or sell a stock on or before a specific date. Being a seller, it is your responsibility to adhere to the conditions of the agreement. The conditions will be either buy or sell, depending on whether the buyer wants to use it till the deadline.

Options Trading- How much we can Earn

There is no adequate solution to this question since it is too broad. The amount of money we can get is mostly determined by the amount we invest. The bulk of trading systems will provide a 10 to 20 times a margin. We can receive a 30 percent to 5 times return on a stock if we buy it and keep it for a few months to 5 years.

The stock price fluctuates every day, as we all know. Prices might range from 10 paise to Rs 1000, depending on the stock. As a result, your skill is in determining the lowest price and buying the stock at that price, then trading it in delivery and selling it when the price rises.

Why should you choose Options Trading?

The premium paid with brokerage and other fees, would be the minimum amount required to purchase an Option. Options come in a variety of lot sizes, which differ from one stock to the next. As a result, you’d have to pay a premium for at least one lot, regardless of the number of shares in it. 

Options trading is used by investors like Kirubakaran Rajendran, Mitesh Patel who are the leading traders in open positions (for example, buying puts to hedge a long position or buying calls to hedge a short position).

Conclusion

Options can be used to trade one-time events like business restructurings and spin-offs, as well as recurrent events like earnings announcements. Stocks can become extremely volatile around such occurrences, providing an opportunity for the astute options trader to profit. Buying inexpensive out-of-the-money calls before an earnings release on a firm that has been in a market downturn. Basic methods such as call or put purchasing should be used by investors with a low-risk sappetite, while there are so many advanced strategies such as put and call writing that should be utilized exclusively by sophisticated investors with a high-risk tolerance.

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