Nifty Options Basics

Options are of two styles
1. European Style
2. American Style

Only difference between them is exercising the option. In European style, options can only be exercised on expiry but in American Style, options can be exercised before expiry.

Nifty options are European style means can only be exercised on expiry only. That is the reason NIFTY options call/put are mentioned as CE or PE, Where C= CALL, P=PUT, E= EUROPEAN STYLE.

All the index based options are European style.

All STOCK options are American style, so these Stock options call/put are mentioned as CA or PA, Where C=CALL, P=PUT, A=American style.

How to trade Nifty Options?
Step 1: Identify the trend.
Step 2: If you are buying CALL buy near support zone. if PUT buy near resistance zone.
Step 3: Put Stop near the breaking of zone if trend reverse. Reverse your trend and go opposite.
Step4: Book full or partial profit near opposite zone.

In-the-money options are very volitale, if you are accurate you can make good profits, if you are wrong and if you delay with out stops, you many lose more.