Basics of Options Trading FAQs

What does Long Dated Options mean ?

Long-dated options are contracts that have a maturity of at least 3 years. Other features of long-dated options are the same as monthly contracts.

What happens to long-dated options?

Long-dated options expire the last Thursday in each month. If Thursday is a holiday, the expiry date is the previous trading day.

What are the advantages of long-dated options?

Options that are long-dated offer substantial benefits such as-

  • Long-term exposure to a stock or an index for a trader.
  • You can hedge your equity position long-term.
  • This reduces risk by allowing traders stay invested for longer periods of time.

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 ?