How, You ask? There are 2 major ways of Doing so:1) The Market moves upside significantly, and 2) The Market goes down significantly. Buying & Selling the Put & Call options based on market behavior becomes decisive for profit-making.
Quick Info -What are Put and Call options?
Put and Call are two actions that you can take in options trading. If you have the Put option, you have the Right to Sell the underlying stock. Whereas if you have the Call option, you have the Right to Buy the Stock under consideration.
Now let’s jump to the main debate after this Small recalling of What are Put and Call options -
(1)Buying a Put Option | Selling a Call option :
- Upwards movement (bullish),
- Downwards movement (bearish),
- Sideways movement (very little movement).
2) Upfront Capital Requirement:
Traders can buy a Lot of 50 units here by paying just the premium amount. I.e 50 x ₹20 = ₹100. So, You pay a Very nominal amount Upfront & Book your chance to make good profits if Share prices Go down until Contract expiry.