Options7 min read
Options trading basics: what a call and a put actually are
A call is the right to buy, a put is the right to sell, and a premium is what that right costs. Here is what each side of an option contract is signing up for.
Options and futures
Option chainsab strikes ke calls aur puts ki table
A table listing every available strike price for an underlying with the premium, open interest, volume and implied volatility of each call and put.
An option chain is the table your broker or NSE displays for an underlying such as Nifty or SBI, showing all strike prices for a given expiry with calls on one side and puts on the other. For each strike you see the last price, bid and ask, volume, open interest, change in OI and implied volatility. The strike closest to the current price is at the money; strikes above it are out of the money for calls and in the money for puts, and the reverse below. Reading the chain shows where trading is concentrated. If SBI trades at ₹800 and the ₹820 call carries the highest OI, many traders treat ₹820 as a level to watch. The chain also reveals liquidity: strikes with tiny volume and wide spreads are expensive to trade. Spend time reading option chains on paper before buying anything.
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Lessons that use this term
Options8 min read
Lot size, expiry and margin: the three things every F&O beginner gets wrong
One Nifty lot is not one unit. Expiry is not just a date. Margin is not the price. Get these three straight before your first F&O order.