Option Trading: a dive into the derivatives

Hello readers, welcome back to Green Bull vs Red bear! Today's blog is about a type of derivative called options. Options trading is potentially the fastest way to make a profit in the stock market, making it the most complex and risky type of trading. according to a report by SEBI about 90% of option traders make a loss in option trading while only 10 % make a profit. On average, the loss is up to 50,000 rs. But worry not as we are going to try to understand what actually is option trading and how it works. What is Options Trading? Options trading is a dynamic financial practice where investors buy and sell contracts granting them the right but not the obligation to buy (call options) or sell (put options) underlying assets such as stocks or commodities at decided prices within a particular timeframe. It's the same as holding a flexible tool for future asset transactions, contingent upon market movements, without being bound to execute them. Within this realm, traders emplo...