Posts

Showing posts with the label Option Selling

RISK MANAGEMENT - Learn Before Enter in Stock Market

Image
 RISK MANAGEMENT - Learn Before Enter in Stock Market              Risk management is a crucial aspect of investing in the share market. It involves strategies and techniques to minimize potential losses and protect your capital. Here are some key principles of risk management in the share market: Diversification: Diversify your portfolio by investing in a variety of stocks or other securities across different sectors, industries, and regions. This helps to reduce the impact of any individual stock or sector's performance on your overall portfolio. Asset Allocation: Allocate your investment capital across different asset classes, such as stocks, bonds, cash, and other instruments, based on your risk tolerance and investment goals. This can help balance risk and potential returns. Stop-Loss Orders: Implement stop-loss orders to automatically sell a stock if it reaches a predetermined price level. This helps limit potential losses by exiting a po...

Share Market Study - Option Selling ( Episode - 08)

Image
  Share Market Study - Option Selling              Option selling, also known as option writing or option shorting , is a strategy in options trading where an investor sells options contracts rather than buying them. When you sell an option, you assume the obligation to fulfill the terms of the contract if the option holder exercises their right. There are two types of options: CALL and PUT             A call option gives the holder the right to buy the underlying asset at a predetermined price (strike price) within a specific timeframe. A put option, on the other hand, gives the holder the right to sell the underlying asset at the strike price within a specific timeframe.             When you sell a call option, you are obligated to sell the underlying asset if the option holder exercises their right. When you sell a put option, you are obligated to buy the underl...

Popular posts from this blog

All Financial Solution In One Book "Rich Dad,Poor Dad"

Share Market Study - Chart Pattern ( Episode 04 )

Popular Investment Option For Invest in India