Option Strategies Explained
Why is Retail Participation on a rise in Option Segment? Option Products were firstly launched by National Stock Exchange (NSE) in the year 2001, However, with various recent changes in the Intraday Exposure/Leverage by SEBI (Regulatory Body), Options Trading and Strategies Based Trading caught up the eyes of Retail Traders as well and their participation has been on a tremendous upsurge. One may have a question, WHY? – Primary reason, what I could figure out is – Hedge Benefit, if you devise a Spread or Hedge Strategy; then Margin Requirement is as low as 20K (not in all the strategies), and that had encouraged the Retail Traders to venture into Options Trading. Other important factors could be, one knows the RISK involved at the time of entering into a Trade and that helps to manage it more efficiently than other Trading Products available in the Indian Capital Market. What are the Commonly Used Option Strategies?