Option Advisory

If you are a trader or investor, you must have heard these terms – futures and options. Even if you are a beginner you must have come across these somewhere. You must have wondered what these are. So, these are the trading instruments in the stock market. You can trade in these financial instruments through your dreamt account.

If you are new to this financial instrument, you can also consult the top stock advisors in India. The best advisory company in India will guide you in trading in futures and options. Along with that, they will also provide recommendations and advice in terms of trading options.

In this article, we will discuss one of these financial instruments which is options. So, let’s get started by knowing what these options are.

What are the options?

An option is a type of financial contract between a buyer and a seller. It allows the trader or investor to buy or sell an asset that is based on the value of stocks, indexed or ETFs.

Further, options have fixed expiration dates and a specified strike price. The strike price is a price at which an option can be exercised. They are usually traded through brokers online or in person. There are various kinds of option contracts that you can trade. These include:

Equity Option

An equity or stock option is a contract allowing an investor to buy or sell a stock at a specific price and time. Stock options belong to the category of equity derivatives since they derive their value from the underlying asset of stock or stock index. There are two main types of options from which an investor can choose one. These are call and put. Call option profits from a rising stock price and put option profit from a falling stock price. If you are unsure how to trade in equity options you can also get guidance and recommendations from the best equity advisor in India.

As said earlier, you can trade in equity options with call and put options. A call option is a contract that allows the holder to buy shares of a specific underlying stock at a set strike price on or before a certain date, without being obliged to do so. A put option is a contract that allows the holder to sell shares of a specific underlying stock at a set strike price on or before a certain date, without being obliged to do so.

Nifty Option

Nifty Options are a kind of contract that has Nifty as the main underlying asset. They are like Nifty50 futures because they have 75 lot sizes, different strike prices, and expiry dates. But, they are different from futures because your profit or loss is not directly linked to the rise or fall of NSE 50.

In options trading, you only pay a smaller amount called the option premium which is just part of how much an asset costs. You don’t have to pay the price of a 75*NIFTY50 future contract when buying an options lot. Options premiums are generally much lower than the actual Nifty value and to calculate them, complex mathematical models are used. This is why you may need the help of some of the best stock advisory services in India, who can guide you through the process of choosing the options contracts.

Nifty forecast for today

DateNifty ValueHighestLowest
15 July 202424,39624,73924,265

Nifty forecast for tomorrow

DateNifty ValueHighestLowest
16 July 202423,39423,84422,947

Nifty forecast for next week

DateWeekdayMinMaxValue
15.07.2024Monday22,95423,85123,401
16.07.2024Tuesday22,94723,84423,394
17.07.2024Wednesday22,80123,69823,248
18.07.2024Thursday22,74023,63723,187
19.07.2024Friday22,63223,52923,079

Nifty forecast for next month

DateWeekdayMinMaxValue
01.07.2024Monday23,53724,43423,984
02.07.2024Tuesday23,49824,39523,945
03.07.2024Wednesday23,39824,29523,845
04.07.2024Thursday23,30724,20423,754
05.07.2024Friday23,27724,17423,724
08.07.2024Monday23,19424,09123,641
09.07.2024Tuesday23,10123,99823,548
10.07.2024Wednesday23,07223,96923,519
11.07.2024Thursday23,20124,09823,648
12.07.2024Friday23,10123,99823,548
15.07.2024Monday22,95423,85123,401
16.07.2024Tuesday22,94723,84423,394
17.07.2024Wednesday22,80123,69823,248
18.07.2024Thursday22,74023,63723,187
19.07.2024Friday22,63223,52923,079
22.07.2024Monday22,49923,39622,946
23.07.2024Tuesday22,37722,37722,824
24.07.2024Wednesday23,22724,12423,674
25.07.2024Thursday22,39823,29522,845
26.07.2024Friday22,56523,46223,012
29.07.2024Monday22,75023,64723,197
30.07.2024Tuesday22,90423,80123,351
31.07.2024Wednesday23,05123,94823,498
01.07.2024Thursday23,14424,04123,591
02.07.2024Friday23,22724,12423,674

Nifty forecast for 1 year

YearMonthAverageClosingChanges%
2024January21,74922,07011.84%
2024February21,98421,95511.26%
2024March21,80121,74910.21%
2024April21,35021,1627.24%
2024May20,66220,3663.20%
2024June20,84621,1157.00%
2024July21,87622,41313.58%
2024August22,01721,84010.67%
2024September22,03122,09511.97%
2024October23,33024,32223.25%
2024November23,63923,18817.51%
2024December22,68322,40213.52%

Banknifty Option

Bank Nifty option is a kind of derivative contract that gives the buyer or seller the option to buy or sell the Bank Nifty Index at a particular price within a specified time. It is a way of trading that allows traders to bet on the price direction of the Bank Nifty index without even having to own the asset itself.

Bank Nifty Options trading has unique characteristics that set it apart from other trading instruments. One of them is that it enables traders to use leverage, which means that they can manage a big position with a small amount of money. Another one is that it allows traders to make money in both bullish and bearish markets. Lastly, traders can apply different trading techniques with Bank Nifty options trading to boost their earnings.

Banknifty forecast today (15 July 2024)

Bank Nifty ViewLevels
Bank Nifty Support51,880 – 51,489 – 51,229
Bank Nifty Resistance52,531 – 52,791 – 53,182
Bank Nifty Range51,551 – 53,005
BiasSideways to Bullish

Finnifty Option

Finnifty options are derivative contracts that depend on the value of the Finnifty index constituents. Finnifty options consist of call and put options contracts that give the holder the right, but not the duty, to buy (call) or sell (put) the underlying index at a fixed strike price on or before the contract’s expiry date.

Finnifty options also have a strike price. You’ll have to pay an option premium to get the Finnifty options contract. So, the profit or loss of a Finnifty option buyer is limited by the premium paid, while the profit or loss of a Finnifty option seller is unlimited.

Fin nifty forecast today (15 July 2024)

Fin Nifty ViewLevels
Fin Nifty Support23,430 – 23,261 – 23,134
Fin Nifty Resistance23,727 – 23,854 – 24,023
Fin Nifty Range23,278 – 23,920

How to trade options?

  1. The first and foremost step is to have a trading account to trade in options.
  2. To trade in options you need to pick which option you want to buy or sell. These options include a call option and a put option.
  3. You need to predict the option strike price.
  4. Options contracts expire on a specific date. You have to choose an option expiration date from the available dates on the option chain.

Advantages

  • Options let you use leverage to trade.
  • With the lower investment, options offer higher returns.
  • Options limit your downside risk but not your upside potential.
  • With options, you can profit from any market scenario.
  • Options can adapt to changing market conditions.
  • Options act as an effective hedging tool and eliminate risks associated with your current holdings.

Disadvantages

  • Options may have low liquidity and make it hard for traders to make entry and exit.
  • Options incur higher fees than other securities.
  • Options lose value over time regardless of the underlying price. It is often known as time decay.
  • Every stock registered with exchanges does not necessarily have its options contract.

Conclusion

In conclusion, trading options can be the most flexible and sophisticated way to trade and invest in the markets. Options trading will give you unexpected returns but remember it requires careful planning and execution. To benefit from this trading instrument you first need to learn from its basics to advanced strategies. Further, you may also seek guidance from the best stock market advisor in India for a better understanding and better returns.