option trading stock online option trading futures options trading

Please have a look on following scenarios and if you aware of any one of them then trading in options can be done.

Scenario 1 - Very low capital is required
Very low capital is required. Even if you have Rs 500 or Rs1000 then trading can be done in options and make money.

Scenario 2 - Upward Direction
If you are expecting any Index or stock will go UP in coming days or in weeks or even in months then trading in options will provide you profits with very low capital.

Scenario 3 - Downward Direction
If you are expecting any Index or stock will go DOWN in coming days or in weeks or even in months then trading in options will provide you profits with very low capital.

Before understanding how to trade on options it is important to know why to trade on options and its benefits.
Some scenarios are explained as follows, so if you aware of any of these scenarios then trading in options will be useful.

Options trading can be done on Indices as well as on stocks.

Following are the indices on which option trading can be done while stocks list is of 233 so if you are interested to know the stock list then please contact us.

Indices means different index which are as follows

Scenario 7 - If you have bought shares
Suppose if you have bought shares and suddenly market reverses and you are expecting that your stock price will go down in coming days or in weeks or in months then you can buy PUT option and get profit from this downtrend direction instead of panic and selling your shares.

Scenario 8 - if you have bought or sold future derivative contracts
Suppose if you have bought or sold future derivative contracts but due to unavoidable circumstances market reverses and your future contract moves against your direction then you can buy CALL or PUT option(depending on direction) and get profits from unexpected change in the market direction instead of panic and booking losses.

Above all techniques are explained in next sub sections.

Please also visit below links to know the advantages and disadvantages in options
http://www.daytradingshares.com/futures_and_options/options_trading_information.html

Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but www.daytradingshares.com does not warrant or guarantee their accuracy or date.
www.daytradingshares.com takes no responsibility for any investment decisions based on recommendations provided on website.
Financial contents like Technical charts, historical charts and quotes are taken from NSE and Yahoo sites.
Note - All quotes are delayed by 15 minutes and unless specified.
Please read at www.daytradingshares.com/disclaimer.php before using any material or advice given at www.daytradingshares.com
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Scenario 4 - Not sure about the Direction
If you are not sure about the direction about either index or stock but sure about the big movement in either direction then in such scenarios option traders can make money.
In such scenario direction is not important but strong movement in either direction is important.

Scenario 5 - Lack of time
If you don’t have time to trade then you can trade only during the month end for 4 to 5 days and make money.
Option expires every last Thursday of the month.

Scenario 6 - Seasonal Trading
You can even trade during specific occasions. Specific occasions like during announcement of IIP numbers which happens once in the month (index of Industrial production), during quarterly results, buy back of shares announcements, dividends and splits announcements. These all dates are easily available on our site.