Part 2 Master Candle Stick Patterns

Key Terms in Options

Option trading revolves around certain essential terms that define risk, reward, and price movement.

Premium

The price you pay to buy an option.
For the buyer, premium = maximum loss.

Strike Price

The fixed level at which you buy (Call) or sell (Put) if you choose to exercise the contract.

Expiry

Every option expires weekly or monthly.
India has:

Weekly expiry: Nifty, Bank Nifty, Fin Nifty

Monthly expiry: All indices & stocks