Selling Puts to Buy Stocks You Want to Own
How selling puts on a stock you want to own works in India, why physical settlement makes delivery real, a worked example, margin, and the risks of a deep fall.
Practical, expert-written guides on algorithmic trading with Python, Demat accounts, F&O strategies, taxation, and everything else Indian traders care about.
How selling puts on a stock you want to own works in India, why physical settlement makes delivery real, a worked example, margin, and the risks of a deep fall.
Can you protect equity mutual fund holdings with Nifty put options? How the hedge is sized, what it costs, the mismatches to expect, and better alternatives.
What happens to in-the-money and out-of-the-money options at expiry in India, why charges on exercise can differ from a sale, and when to square off instead.
A practical options trading plan template: capital and purpose, instruments, setups, sizing, entries and exits, loss limits, schedule and review, with examples.
How a call ratio backspread works, a worked example with both breakevens and the maximum loss zone, why it needs a large move, and how it compares with a straddle.
How to activate F&O trading in India: why brokers ask for income proof, which documents are commonly accepted, the risk disclosure, and what to do before you start.
Options trading terms explained in plain language: contracts and strikes, premiums and moneyness, the Greeks and volatility, common positions, margin and settlement.
Implied versus historical volatility explained: how each is measured, why implied usually sits above realised, how traders use the comparison, and the pitfalls.
How short selling works in India: why cash-market shorts must be closed the same day, what short delivery means, and longer-term routes through SLB and derivatives.
What a crowded trade looks like in options, why crowded positions unwind so violently, how to read crowding on the option chain, and how to avoid being last out.
How options are priced, in plain language: intrinsic and time value, the inputs that matter, what pricing models assume, and how implied volatility comes from price.
What happens in the first 15 minutes after the market opens, why prices and option premiums are least reliable then, the common traps, and rules for the open.