Advanced Institutions Option Trading

Financial Market is a marketplace where assets such as stocks, bonds, commodities, and derivatives (like options) are bought and sold.

Key components:

Equity Markets – Shares of companies

Debt Markets – Government or corporate bonds

Derivatives Market – Futures, Options

Currency and Commodity Markets

Options are financial contracts giving the buyer the right (not obligation) to buy/sell an asset at a set price before a specific date.

✅ Types of Options:
Call Option: Right to Buy

Put Option: Right to Sell

✅ Key Terminologies:
Strike Price: Agreed price to buy/sell

Premium: Cost of the option

Expiration Date: Validity of the contract

ITM/ATM/OTM: In-the-money / At-the-money / Out-of-the-money