Basics of Options Trading FAQs

In India what is the cycle of contract for Options ?

Except for long-dated contracts and options, India has a maximum 3-month trading cycle. This includes 1 month, 2 or 3 months.

On the day following the expiration date of the monthly contracts, option contracts can be introduced. The last trading day of each month is the expiration date. Buyers have the choice of three contracts with different expiry dates at any given time.

On May 14, 2021, for example, there would be three Option contracts. Contracts that expire on July 26 and June 28 are May 31, June 28, and July 31. New contracts expiring on May 31st, June 28th and July 26th will be available for trading starting June 1.


What is the work of Options ?


How many types of Options ?


What is strike price of option ?


When does Options expire?


What is the process for trading options ?


How futures and Options are different ?


How Nifty can be traded ?


What will happen when an option expires out of money ?


Do I have to pay margin in Options ?


How can the Options contracts be settled ?


What do you mean by Covered Options ?


When do you mean by Naked Options ?


What does American Options refers to ?


What does European option mean? ?


In Options , What is the meaning of At-The-Money , Out-of-the-Money (OTM) and In-The-Money ?


How to take decision on either to buy /sell call Option or put Option ?


Is it possible to trade on option of any stock or index?


How Square off and exercise an Option is different ?


What does intrinsic value of an option mean and how to calculate intrinsic value of an option ?


What does time value of an Option mean ?