Abstract : The chapter "Introduction to Options Trading" gives a basic overview of options trading, covering key concepts such as the definition of options, calls vs. puts, the underlying asset, option types (American vs. European, exotic), and key terminology (strike price, expiration date, premium, in-the-money, at-the-money, out-of-the-money). It goes over the functions of options in speculation, hedging, and income creation, with an emphasis on risk and reward profiles for purchasing and selling options. The chapter also discusses trading methods, such as reading option chains, as well as regulatory issues surrounding options exchanges and account approval in India. It emphasises the significance of understanding options fundamentals before implementing advanced methods and understands the inherent hazards of option trading.
Cite : Khan, A., & Rahman, M. S. (2023). Analyzing Consumer Behavior in the Indian Financial Market: A Comprehensive Study of Options Trading Fundamentals (1st ed., pp. 93-98). Noble Science Press. https://doi.org/10.52458/9789388996969.nsp2023.eb.ch-11
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