The option to purchase in the contract can buy any stock at the price of the predetermined price. And this process is to buy and sell till the end of the expiry date. For example, when you plan to buy some property, you may have placed a non-refundable deposit to hold it for some time while evaluating other options.

This is an example of the type of option. When the strike price of the option is lower than the market price of related index/share, then these money-call call option is applicable. In-the-money put option is that when the strike price of the option is higher than the market price of related index/share.

The concept of the option can be understood by this example. If the deal expires, if you have made a call of 8300 and the expiry of Nifty is at 8308, the STT Expiry Value will be applicable at the rate of lot size x STT rate.

I.e. STT (8308) x 25 x 0.125 percent = 259 rupees per lot. If you have spent 8300 calls on cutting before the expiry of the deal, then the deal has been cut off at Rs 2. I.e. STT = 2 x 25 x 0.017 percent = 0.0085 per lot.

There are two types of options.

Call option: A call option is a contract that gives the investor the right to buy a call in an asset at a fixed price within a certain time frame. The pre-determined price is called strike price, which is known as the end date. A call option allows you to buy 100 shares. You can sell call options on profit or loss before the contract expires. Generally, it is used when the investor thinks that a commodity should bet on the speed of a commodity. It would have to pay the premium, where the maximum loss of the investor is done.

Put Option: The put option is the opposite of the call option, it gives the holder the right to buy shares. The put option gives the holder the right to sell the underlying shares at the strike date or the strike price before that. It is used when the investor thinks that there is a possibility of a further recession in the market. In such a situation, it either meets the market or buys more according to its own needs.

As an example, you are told that you have bought the Puttomotor's strike price of 500 rupees and if the price of Tatamoters goes down to 500 and if it costs 450, then you can sell your Tatamoters 500 strikes by selling profits. And you can do rollovers even if you hold your position.

In the same way, you have bought the Call of Tatamoters call of 500 Strike Price and if the price of Tatamoters goes up to 500 and if the price is 550, then you can make profits by selling the 500 strikes of your Tata Motors.

The behavior of the underlying stock has a significant impact on the value of the option. Investors have different opinions about how a particular stock will behave in the future and therefore, disagree with the value of a given option. Also, the value of the option decreases near the end date. Therefore, its value depends heavily on the remaining time to finish.so you need to take to advise for Option Tips.

If you decide not to use the option to buy stocks, and you are not obliged to do so, the option premium is the only cost. An option premium = Option real value + option time value of an option contract while you try was reported to be the price per share purchased stock underlying the (call) or sell (for a put) by the option holder, the strike price it is said.

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