Specialisation project report on

“A STUDY ON TRADING STRATEGY IN INDIA”

Submitted in partial fulfilment for award of the degree of

Masters of Management Studies (MMS)

(under University of Mumbai)

Submitted By

Mr. Jayesh Dhanraj Mali

(Roll. No. 31582148)

Under the guidance of

Prof. Shraddha Daftardar

2021-23

Pramod Ram Ujagar Tiwari

Saket Institute of Management

1
 CERTIFICATE

This is to certify that project “A STUDY ON TRADING STRATEGY IN INDIA” is

successfully completed by Mr. Jayesh Dhanraj Mali during the IV semester, in partial
fulfilment of the Master’s Degree in Management Studies recognised by University of
Mumbai for the Academic Year 2022-23 through Pramod Ram Ujagar Tiwari Saket Institute
of Management. This project is original and not submitted earlier for award of any degree,
diploma or associateship of any other university or institute.

Name: Prof. Shraddha Daftardar

Date: (Signature of the Guide)

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 DECLARATION

I hereby declare that this Project Report submitted by me to Pramod Ram Ujagar Tiwari Saket
Institute of Management is a bonafide work undertaken by me and it is not submitted to any
other University or Institution for award of any degree, diploma/certificate or published any
time before.

Name: Mr. Jayesh Dhanraj Mali

Roll. No.: 31582148 (Signature of the Student)

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 Acknowledgements
The success and final outcome of this project required a lot of guidance and assistance
from many people and I am extremely privileged to have got this all along the
completion of my project. All that I have done is only due to such supervision and
assistance and I would not forget to thank them.

I respect and thank Mr Saket Tiwari , for providing me an opportunity to do the

project work in Saket Gyanpeeth and giving me all support and guidance which made
me complete the project duly. I am extremely thankful to him for providing such a nice
support and guidance, although he had busy schedule managing the corporate affairs. I
also thank Mrs. Shobha Nair the C.E.O of Saket Gyanpeeth.

I owe my deep gratitude to my project guide Prof.Shraddha Daftardar, who took keen
interest on our project work and guided me all along, till the completion of our project
work by providing all the necessary information.
I am thankful to and fortunate enough to get constant encouragement, support and
guidance from all Teaching staff and Director; Dr. Sanoj Kumar of Pramod Ram
Ujagar Tiwari Saket Institute of Management who helped me in successfully completing
my project work.

4
 Table of Contents

Chapter Headings Page No.

Number
1 Introduction 6-11

2 Review of Literature 12-13

3 Methodology 14-31

4 Data analysis & Interpretation 31-41

5 Discussion 42-45

6 Conclusion 46-47

7 Bibliography/References 48

8 Annexure 49-50

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 Introduction to option

This study bridges the gap between option trading and the information content of investor
overreaction by proposing an algorithm for volatility forecasting recruiting investor sentiment
through the simulation of an option trading strategy. The mechanisms or factors which could
filter out the noise and enhance the performance of trading are practical and theoretical issues
in the areas of finance, decision support and artificial intelligence.
Option trading is a type of investment where traders buy and sell contracts that give them the
right (but not the obligation) to buy or sell a particular asset at a specified price and time. These
contracts are called "options" and can be bought and sold in various financial markets around
the world.
Options are a type of derivative, meaning their value is derived from the underlying asset. The
price of an option is influenced by several factors, such as the current market price of the
underlying asset, the strike price (the price at which the option can be exercised), the time until
expiration, and the volatility of the underlying asset.
The asset that an option is based on can be anything, such as stocks, commodities, currencies,
or indexes. Options trading is a popular investment strategy because it offers traders flexibility
and the potential for high returns, but it also comes with risks.
There are two types of options: call options and put options. A call option gives the buyer the
right to buy the underlying asset at a specified price, while a put option gives the buyer the
right to sell the underlying asset at a specified price.
Option trading strategies can be used to generate income, hedge against risks, or speculate on
market movements. These strategies involve buying and selling options contracts with different
strike prices, expiration dates, and premiums.
Before trading options, it is important to understand the risks involved and to have a solid
understanding of the underlying asset and the options market. It is recommended that traders
start with a demo account or with small investments to gain experience and learn the ropes
before committing large amounts of money to options trading.
Option trading is a complex and sophisticated investment strategy that involves buying and
selling contracts that give traders the right (but not the obligation) to buy or sell a specific
underlying asset at a certain price and time. The underlying asset can be anything from stocks,
commodities, currencies, to indexes.
Options trading can offer traders flexibility and the potential for high returns. For example,
traders can use options to generate income by selling contracts and collecting the premium, or
they can use options to hedge against risks in their portfolio. Additionally, options trading
allows traders to speculate on market movements and make profits from both rising and falling
markets.

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Option trading can have a significant impact on the stock market in several way:

1. Increased liquidity: Option trading can increase liquidity in the stock market by
providing traders with an alternative way to participate in the market. This can increase
trading volume and reduce bid-ask spreads, making it easier for traders to buy and sell
stocks.

2. Price discovery: Option trading can also help in price discovery of stocks by providing
a mechanism for traders to express their views on the future direction of stock prices.
The prices of options are based on the underlying stock prices, and the trading of
options can provide valuable information about market sentiment and expectations.

3. Risk management: Option trading can help investors manage risk in their portfolios by
providing a way to hedge against adverse price movements in stocks. This can help
investors to protect their investments and reduce their exposure to market volatility.

4. Impact on volatility: Option trading can also impact volatility in the stock market.
Option trading can increase volatility as traders buy and sell options to take advantage
of market movements, leading to increased price swings. However, option trading can
also reduce volatility by providing a means for investors to hedge against market
movements.

5. Impact on market efficiency: Finally, option trading can impact market efficiency by
affecting the speed and accuracy of price discovery. Option trading can lead to faster
price discovery by providing traders with more information and market participants
with more ways to express their views on stock prices.

Overall, option trading can have both positive and negative impacts on the stock market, and
its effects can depend on the specific strategies employed by traders and the overall market
conditions. However, it is clear that option trading plays an important role in the functioning
of the stock market and can provide valuable benefits to investors and traders.

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 Definition and concepts of option trading

Option trading is a type of financial trading that involves buying and selling options contracts,
which give the holder the right, but not the obligation, to buy or sell an underlying asset at a
specified price within a specified time frame. Options can be used for a variety of purposes,
including hedging against market risks, generating income, and speculating on price
movements.

Here are some key concepts in option trading:

1. Call option: A call option is a type of options contract that gives the holder the right,
but not the obligation, to buy an underlying asset at a specified price within a specified time
frame.
2. Put option: A put option is a type of options contract that gives the holder the right, but
not the obligation, to sell an underlying asset at a specified price within a specified time frame.
3. Strike price: The strike price is the price at which the holder of an options contract can
buy or sell the underlying asset.
4. Expiration date: The expiration date is the date by which the holder of an options
contract must exercise their right to buy or sell the underlying asset.
5. Premium: The premium is the price paid by the buyer of an options contract to the seller
of the contract. It represents the cost of buying the option.
6. In-the-money: An option is said to be in-the-money if exercising the option would result
in a profit for the holder. For a call option, this means the strike price is below the current
market price of the underlying asset, while for a put option, it means the strike price is above
the current market price.
7. Out-of-the-money: An option is said to be out-of-the-money if exercising the option
would result in a loss for the holder. For a call option, this means the strike price is above the
current market price of the underlying asset, while for a put option, it means the strike price is
below the current market price.

Overall, option trading is a complex and sophisticated form of financial trading that requires a
deep understanding of the underlying assets, market conditions, and options contracts
themselves. Traders and investors should carefully consider the risks and rewards of option
trading before engaging in this type of activity.

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 History of Option Trading
Option trading has a long history that dates back to ancient civilizations. However, the modern
form of option trading as we know it today began in the 17th century with the trading of call
options on tulip bulbs in the Dutch Republic. During this period, tulip bulbs were highly prized
and in short supply, which led to speculation in the market and the development of options
trading.
In the United States, option trading began in the early 19th century with the trading of call and
put options on stocks and commodities. The first organized exchange for trading options was
the Chicago Board Options Exchange (CBOE), which was established in 1973. The CBOE
played a significant role in the development of options trading by introducing standardized
contracts and trading rules, which helped to increase the liquidity and efficiency of the market.
In the 1980s and 1990s, option trading became more popular among retail investors and traders
due to advances in technology and the availability of online trading platforms. This led to
increased competition among options exchanges and the development of new products, such
as index options, futures options, and exchange-traded funds (ETFs).
Today, option trading is a global phenomenon with a wide range of participants, from
individual investors to large financial institutions. The market has evolved to include a diverse
range of options contracts on a variety of assets, including stocks, currencies, commodities,
and futures. Option trading is now an essential tool for managing risk, generating income, and
speculating on price movements in the financial markets.

Evaluating option strategies in India can involve several factors such as historical market
trends, volatility, liquidity, trading costs, and regulatory environment. Here are some key points
to consider when evaluating option strategies in India:

It is essential to analyze the historical performance of option strategies in India to determine

their effectiveness in generating returns and managing risk. Back testing can be used to evaluate
how the strategy would have performed under different market conditions.
1. Volatility: The volatility of the underlying asset can significantly impact the
performance of option strategies. Strategies that rely on high volatility to generate returns may
be more risky than those that do not.
2. Liquidity: The liquidity of the options market in India can impact the ability to execute
trades at favorable prices. It is important to consider the liquidity of the underlying asset and
the options contracts themselves when evaluating a strategy.
3. Trading costs: Trading costs such as commissions and bid-ask spreads can impact the
profitability of option strategies. Low-cost brokers and market makers can help reduce trading
costs.
4. Regulatory environment: The regulatory environment in India can impact the
availability and complexity of option strategies. It is important to stay up to date with regulatory
changes and ensure compliance with applicable laws and regulations.

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5. Risk management: Effective risk management is crucial when trading options in India.
Strategies should be evaluated for their ability to manage risk, including the use of stop-loss
orders and position sizing.

Overall, evaluating option strategies in India requires a thorough understanding of the market,
the underlying asset, and the strategy itself. It is important to consider a range of factors and to
carefully analyze historical performance and risk management techniques.

Option trading strategies offer several advantages and disadvantages, which are discussed
below:

Advantages:

1. Leverage: Options provide investors with the ability to leverage their investments,
allowing them to control a larger amount of underlying assets with a smaller investment. This
can increase the potential returns for the investor.

2. Flexibility: There are a variety of option strategies available to investors, allowing them
to take advantage of different market conditions and to customize their investment approach to
their specific needs.

3. Limited risk: Many option strategies limit the investor's risk to the premium paid for
the option. This can help to mitigate potential losses and provide a more predictable investment
outcome.

4. Hedging: Options can be used to hedge against losses in other positions, helping
investors to manage their risk and protect their portfolio.

Disadvantages:

1. Complexity: Option trading strategies can be complex and require a deeper

understanding of financial markets and investment strategies. This may make it difficult for
some investors to navigate and may increase the risk of loss.

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2. Time decay: Options have a limited lifespan, and as they approach expiration, they lose
value. This means that investors must be mindful of the time horizon of their investment and
may need to adjust their position as the option approaches expiration.

3. Volatility: Options are sensitive to changes in market volatility, which can make them
more difficult to predict and may increase risk for investors.

4. Liquidity: Not all options have sufficient liquidity in the market, which can make it
difficult to enter or exit positions at the desired price. This may result in losses for investors
who are unable to execute their trades in a timely manner.

11
 Review of Literature
1. Ait-Sahalia Y., Brandt M. (2001) Variable selection for portfolio choice. Journal of
Finance
This paper analyzes returns to trading strategies in options markets that exploit
information given by a theoretical asset pricing model. We examine trading strategies
in which a positive portfolio weight is assigned to assets which market prices exceed
the price of a theoretical asset pricing model. We investigate portfolio rules which
mimic standard mean-variance analysis is used to construct optimal model based
portfolio weights. In essence, these portfolio rules allow estimation risk, as well as price
risk to be approximately hedged. An empirical exercise shows that the portfolio rules
give out-of-sample Sharpe ratios exceeding unity for S&P 500 options. Portfolio returns
have no discernible correlation with systematic risk factors, which is troubling for
traditional risk based asset pricing explanations.
2. IEEE Transactions on Systems, Man, and Cybernetics, Part B (Cybernetics) ( Volume:
28, Issue: 4, August 1998)
Neurofuzzy approaches for predicting financial time series are investigated and shown
to perform well in the context of various trading strategies involving stocks and options.
The horizon of prediction is typically a few days and trading strategies are examined
using historical data. Two methodologies are presented wherein neural predictors are
used to anticipate the general behavior of financial indexes (moving up, down, or
staying constant) in the context of stocks and options trading. The methodologies are
tested with actual financial data and show considerable promise as a decision making
and planning tool.
3. Expert Systems with Applications
Volume 38, Issue 1, January 2011, Pages 585-596
This study investigates an algorithm for an effective option trading strategy based on
superior volatility forecasts using actual option price data for the Taiwan stock market.
The forecast evaluation supports the significant incremental explanatory power of
investor sentiment in the fitting and forecasting of future volatility in relation to its
adversarial multiple-factor model, especially the market turnover and volatility index
which are referred to as the investors’ mood gauge and proxy for overreaction. After
taking into consideration the margin-based transaction cost, the simulated trading
indicates that a long or short straddle 15 days before the options’ final settlement day
based on the 60-day in-sample-period volatility forecasting recruiting market turnover
achieves the best average monthly return of 15.84%. This study bridges the gap between
option trading, market volatility.
4. Journal of Behavioral and Experimental Finance, 2018
"Option Trading Strategies: An Empirical Study of Market Timing and Trend
Following" by J. Wang and D. Lien. This paper examines the effectiveness of different
option trading strategies in market timing and trend following. The authors analyze the
performance of these strategies using historical data and compare them with traditional
buy-and-hold strategies. Mathematical Problems in Engineering, 2020
5. "A Review of Option Trading Strategies Based on Implied Volatility" by Y. Li, Z. Li,
and Q. Li. This paper reviews option trading strategies based on implied volatility,
including the use of straddles, strangles, and iron butterflies. The authors discuss the

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 theoretical background of these strategies and analyze their performance using
empirical data.
6. Journal of Applied Finance and Banking, 2019
"Option Trading Strategies and Their Market Risk Measures" by F. Firatli and N.
Taskin. This paper examines the market risk measures of different option trading
strategies such as covered calls, collars, and straddles. The authors analyze the market
risk of these strategies using Value-at-Risk (VaR) and Conditional Value-at-Risk
(CVaR) measures.
7. Journal of Investment Strategies, 2015
"Option Trading Strategies: A Review of the Current State-of-the-Art" by H. Folmer,
M. De Ceuster, and L. Zhang. This paper reviews various option trading strategies such
as covered calls, protective puts, and straddles. The authors also discuss recent
developments in option trading strategies and their applications in the financial markets.
8. Dmitriy Muravyev, Neil D Pearson
The Review of Financial Studies, Volume 33, Issue 11, November 2020
Conventional estimates of the costs of taking liquidity in options markets are large.
Nonetheless, options trading volume is high. We resolve this puzzle by showing that
options price changes are predictable at high frequency, and many traders time
executions by buying (selling) when the option fair value is close to the ask (bid).
Effective spreads of traders who time executions are less than 40% of the size of
conventional measures, and the overall average effective spread is one-quarter smaller
than conventional estimates. Price impact measures are also affected. These findings
alter conclusions about the after-cost profitability of options trading strategies.
9. Henk Berkman The Review of Financial Studies, Volume 9, Issue 3, July 1996,
Published: 03 June 2015
This article focuses on the difference between market makers and limit orders in their
role as suppliers of liquidity. For both sources of liquidity I analyze the price behavior
of stocks and options around large option trades and I estimate the premium paid by the
initiator of the large trade. My findings suggest that limit orders for options are “picked
off” after adverse changes in the underlying stock price. Furthermore, I find that for
these transactions there is a permanent change in quotations in the direction of the
transaction. After transactions where market makers supply liquidity, quotes tend to
return to their pretrade level.

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 Research Methodology
Research problem:
As this project is totally depends on secondary data it is very difficult to get a proper
information regarding this topic. Many of the times the information is incomplete or
inappropriate so this was the main issue in the research. As well as if I go for primary data
collection then I got different feedbacks on the topic.

Research Objectives:
1. To identify the most profitable option trading strategies in the Indian market.
2. To evaluate the risk associated with different option trading strategies.
3. To analyze the impact of market volatility on option trading strategies.
4. To compare the performance of different option trading strategies in the Indian market.
5. To investigate the impact of changes in regulatory environment on option trading
strategies.

Overall, the research objectives of option trading strategies in India should be clearly
defined to guide the research and ensure that the study addresses the key issues and
challenges faced by investors and traders in the Indian market. This research includes the
statements for the easy and proper option strategies.

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 Data Collection
Primary Data:
Survey Method
On this topic primary data collection is bit difficult. There is less number of peoples
who trade in options and likewise very less population is aware with the trading
strategies in options.
So I have created questioner to get responses from the selected group of people. On
that basis I analyzed the research.
But there is limited responses so we can’t take this data as a proper knowledge that’s
why I took a help from secondary data.

Secondary data
Financial Databases: Financial databases such as Bloomberg, Reuters, and Yahoo
Finance provide a wealth of information on option trading strategies. You can use
these databases to obtain historical price data, option volumes, and other market
data.

Regulators: Regulatory bodies such as the Securities and Exchange Board of India
(SEBI) provide access to data on option trading strategies. You can obtain
information on options contracts, trading volumes, and other market data from these
sources.

Online Forums: Online forums such as Reddit can be a great source of information
on option trading strategies. You can connect with other traders and investors to
discuss strategy selection, implementation, and performance.

Books: There are several books written on option trading strategies that provide
valuable insights into the topic. You can find books on options trading at your local
library or bookstore.

15
 Option Trading Strategies
Buy Call
Buying or “Going Long” on a Call is a strategy that must be devised when the investor is bullish
on the market direction moving up in the short term.
A Long Call Option is the simplest way to benefit if the investor believes that the market will
make an upward move. It is the most common choice among first-time investors. “Being Long”
on a Call Option means the investor will benefit if the underlying Stock/Index rallies. However,
the risk is limited on the downside if the underlying Stock/Index makes a correction.
Investor View: Bullish on the Stock / Index.
Risk: Limited to the premium paid.
Reward: Unlimited.
Breakeven: Strike Price + premium paid.
Illustration
E.g Nifty is currently trading @ 5500. Investor is expecting the markets to rise from these
levels. So buying Call Option of Nifty having Strike 5500 @ premium 50 will benefit the
investor when Nifty goes above 5550.

Strategy Stock/Index Type Strike Premium

Outflow
Buy Call NIFTY(Lot Buy CALL 5500 50
size 50)

Nifty @ Expiry Net Profit (rs)

5200 -2500
5300 -2500
5400 -2500
5500 -2500
5550 0
5600 2500
5700 7500
In the above chart, the breakeven happens the
5800 12500 moment Nifty crosses 5550 and risk is limited to a
5900 17500 maximum of2500 (calculated as Lot size * Premium
Paid).

16
 Buy Put
Buying or “Going Long” on a Put is a strategy that must be devised when the investor is Bearish
on the market direction going down in the short-term.
A Put Option gives the buyer of the Put a right to sell the Stock (to the Put Seller) at a pre-
specified price and thereby limit his risk. “Being Long” on a Put Option means the investor
will benefit if the underlying Stock/Index falls down. However, the risk is limited on the upside
if the underlying Stock/Index rallies.
Investor View: Bearish on the Stock / Index.
Risk: Limited to the premium paid.
Reward: Unlimited.
Breakeven: Strike Price – premium paid.
Illustration
Eg. Nifty is currently trading @ 5500. Investor is expecting the markets to fall down from these
levels. So buying a Put Option of Nifty Strike 5500 @ premium 50, the investor can gain if
Nifty falls below 5450.
Strategy Stock/Index Type Strike Premium
Outflow

Buy Put NIFTY(Lot size Buy PUT 5500 50

50)

Nifty @ Expiry Net Profit (rs)

5100 17500
5200 12500
5300 7500
5400 2500
5450 0
5500 -2500
5600 -2500
5700 -2500
5800 -2500

In the above chart, the breakeven happens the moment Nifty crosses 5450 and risk is limited
to a maximum of 2500 (calculated as Lot size * Premium Paid)

17
 Sell Call

Selling or “Going Short” on a Call is a strategy that must be devised when the investor is not
so bullish on the market. On selling a Call, the investor earns a Premium (from the buyer of the
Call).
This position offers limited profit potential and the possibility of large losses on big advances
in underlying prices. Although easy to execute it is a risky strategy since the seller of the Call
is exposed to unlimited risk.
Investor View: Very Bearish on the Stock / Index
Risk: Unlimited.
Reward: Limited to the premium received. Breakeven: Strike Price + premium received.
Illustration
Eg. Nifty is currently trading @ 5500. Investor is expecting the markets to fall down drastically
from these levels. So by selling a Call Option of Nifty having Strike 5500 @ premium 50, the
investor can get an inflow of
50 and benefit if Nifty stays below 5550.

Strategy Stock/Index Type Strike Premium

Inflow
Sell Call NIFTY(Lot Sell CALL 5500 50
size 50)

Nifty @ Expiry Net Profit (rs)

5100 2500
5200 2500
5300 2500
5400 2500
5450 0
5500 -2500
5600 -7500
5700 -12500
5800 -17500

In the above chart, the breakeven happens the moment Nifty crosses 5550 and risk is unlimited
.It is important to note that irrespective of how much the market falls, the reward is limited to
2500 only.

18
 Sell Put

Selling or “Going Short” on a Put is a strategy that must be devised when the investor is Bullish
on the market direction and expects the stock price to rise or stay sideways at the minimum
When investor sells a Put, he/she earns a Premium (from the buyer of the Put).If the underlying
price increases beyond the Strike price, the short Put position will make a profit for the seller
by the amount of the premium. But, if the price decreases below the Strike price, by more than
the amount of the premium, the Put seller will lose money.
Investor View: Very Bullish on the Stock / Index.
Risk: Unlimited.
Reward: Limited to the premium received.
Breakeven: Strike Price – premium received.
Illustration
Eg. Nifty is currently trading @ 5500. Investor is Bullish on the market. So by going selling a
Put Option of Nifty having Strike 5500 @ premium 50, the investor can gain if Nifty goes
above 5550.
Strategy Stock/Index Type Strike Premium
Inflow
Short Put NIFTY(Lot Sell PUT 5500 50
size 50)

Nifty @ Expiry Net Profit (rs)

5100 -17500
5200 -12500
5300 -7500
5400 -2500
5450 0
5500 2500
5600 2500
5700 2500
5800 2500

In the above chart, the breakeven happens the moment Nifty crosses 5450 and risk is unlimited.
It is important to note that irrespective of how much the market gains, the reward is limited to
2500 only.

19
 Bull Call Spread

Bull Call Spread is a strategy that must be devised when the investor is moderately bullish on
the market direction going up in the short-term.
A Bull Call Spread is formed by buying an “In-the-Money Call Option” (lower strike) and
selling an “Out-of- the-Money Call Option” (higher strike). Both the call options must have
the same underlying security and expiration month.
The net effect of the strategy is to bring down the cost and breakeven on a Buy Call (Long
Call) strategy.
The investor will benefit if the underlying Stock/Index rallies. However, the risk is limited on
the downside if the underlying Stock/Index makes a correction.
Investor view: Moderately bullish on the Stock/ Index.
Risk: Limited.
Reward: Limited to the net premium paid.
Breakeven: Strike price of Buy Call + net premium paid.

Illustration
Eg. Nifty is currently trading @ 5500. Investor is expecting the markets to rise from these
levels. So buying Put Option of Nifty having Strike 5400 @ premium 150 and selling Call
Option of Nifty having Strike 5600 @ premium 50 will help investor benefit if Nifty goes
above 5500.

Strategy Stock/Index Type Strike Premium

Bull NIFTY(Lot Buy 5400 150

Call size 50) CALL (Outflow)
Spread
Sell 5600 50
CALL (Inflow)

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 Nifty @ Expiry Net Profit (rs)
5100 -5000
5200 -5000
5300 -5000
5400 -5000
5500 0
5600 5000
5700 5000
5800 5000
5900 5000

In the above chart, the breakeven happens the moment Nifty crosses 5500 and risk is limited
to a maximum of 5000 (calculated as Lot size * Premium Paid).

21
 Bull Put Spread

Bull Put Spread is a strategy that must be devised when the investor is moderately bullish on
the market direction going up in the short-term.
A Bull Put Spread is formed by buying an “Out-of-the-Money Put Option” (lower strike) and
selling an “In- the-Money Put Option” (higher strike). Both Put options must have the same
underlying security and expiration month.
The concept is to protect the downside of a Put sold by buying a lower strike Put, which acts
as insurance for the Put sold.
This strategy is equivalent to the Bull Call but is done to earn a net credit (premium) and collect
an income.
Investor view: Moderately bullish on the Stock/ Index.
Risk: Limited.
Reward: Limited to the premium received.
Breakeven: Strike price of Short Put - premium received.

Illustration
Eg. Nifty is currently trading @ 5500. Investor is expecting the markets to rise from these
levels. By selling a Put Option of Nifty having Strike 5600 @ premium 150 and buying a Put
Option of Nifty having Strike 5400 @ premium 50, the investor can get an inflow of the
premium of 100 and benefit if Nifty stays above 5500.

Strategy Stock/Index Type Strike Premium

Bull Put NIFTY(Lot Sell 5600 150

Spread size 50) PUT (Inflow)

Buy 5400 50
PUT (Outflow)

22
Nifty @ Expiry Net Profit (rs)
5100 -5000
5200 -5000
5300 -5000
5400 -5000
5500 0
5600 5000
5700 5000
5800 5000
5900 5000

In the above chart, the breakeven happens the moment Nifty crosses 5500 and risk is
limited to a maximum of 5000 (calculated as Lot size * Premium received). Payoff
Schedule for Bull Call/Put Spread is the same. Onlydifference is that in Bull Put Spread
there is an inflow of premium.

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 Bear Call Spread

Bear Call Spread is a strategy that must be devised when the investor is moderately bearish on
the market direction and is expecting the underlying to fall in the short-term.
A Bear Call Spread is formed by buying an “Out-of-the-Money Call Option” (higher strike)
and selling an “In-the-Money Call Option” (lower strike). Both Call options must have the
same underlying security and expiration month.
The investor receives a net credit because the Call bought is of a higher strike price than the
Call sold.
The concept is to protect the downside of a Call sold by buying a Call of a higher strike price
to insure the Call sold.
Investor view: Moderately bearish on the Stock/ Index.
Risk: Limited.
Reward: Limited to the net premium received. Breakeven: Strike price of Short Call + premium
received.

Illustration
Eg. Nifty is currently trading @ 5500. Investor is expecting the markets to fall down drastically
from these levels. So, by selling a Call option of Nifty having Strike 5400@ premium 150 and
buying a Call option of Nifty having Strike 5600 @ premium 50, the investor can get an inflow
of the premium of 100 and benefit if Nifty stays below 5500.

Strategy Stock/Index Type Strike Premium

Bear Call NIFTY(Lot size Sell CALL 5400 150 (Inflow)

Spread 50)

Buy CALL 5600 50 (Outflow)

24
 Nifty @ Expiry Net Profit (rs)
5100 5000
5200 5000
5300 5000
5400 5000
5500 0
5600 -5000
5700 -5000
5800 -5000
5900 -5000

In the above chart, the breakeven happens the moment Nifty crosses 5500 and risk is limited
to a maximum of 5000 (calculated as Lot size * Premium received).

25
 Bear Put Spread

Bear Put Spread is a strategy that must be devised when the investor is moderately bearish on
the market direction and is expecting the underlying to fall in the short-term.
A Bear Put Spread is formed by buying an In-the-Money Put Option (higher strike) and selling
Out-of-the- Money Put Option (lower strike). Both Put options must have the same underlying
security and expiration month.
The investor has to pay a net premium because the Put bought is of a higher strike price than
the Put sold. The net effect of the strategy is to bring down the cost and raise the breakeven on
buying a Put (Long Put). Investor view: Moderately bearish on the Stock/ Index.
Risk: Limited to the premium paid.
Reward: Limited.
Breakeven: Strike price of Long Put - net premium paid.

Illustration
Eg. Nifty is currently trading @ 5500. Investor is expecting the markets to fall down drastically
from these levels. So by selling a Put option of Nifty having strike 5400@ premium 50 and
buying a Put option of Nifty having strike 5600 @ premium 150 will help investor benefit if
Nifty stays below 5500.

Strategy Stock/Index Type Strike Premium

Bear Put NIFTY(Lot size Sell PUT 5400 50 (Inflow)

Spread 50)

Buy PUT 5600 150

(Outflow)

26
 Nifty @ Expiry Net Profit (rs)
5100 -17500
5200 -12500
5300 -7500
5400 -2500
5450 0
5500 2500
5600 2500
5700 2500
5800 2500

In the above chart, the breakeven happens the moment Nifty crosses 5500 and risk is limited
to a maximum of 5000 (calculated as Lot size * Premium paid). Payoff Schedule for Bull
Call/Put Spread is the same. Only difference is that in case of Bear Call Spread there is inflow
of premium.

27
 Long Call Butterfly

Long Call Butterfly is a strategy that must be devised when the investor is neutral on the market
direction and expects volatility to be less in the market.
A Long Call Butterfly strategy is formed by selling two At-the-Money Call Options, buying
one Out-of-the- Money Call Option and one In-the-Money Call Option.
A Long Call Butterfly is similar to a Short Straddle except that here the investor’s losses are
limited. The investor will benefit if the underlying Stock/ Index remains at the middle strike at
expiration.
Investor view: Neutral on direction and bearish on Stock/ Index volatility
Risk: Limited to the premium paid.
Reward: Limited.
Lower Breakeven: Strike price of Lower Strike Long Call + net premium paid. Higher
Breakeven: Strike Price of Higher Strike Long Call – net premium paid.
Illustration
Eg. Nifty is currently trading @ 5500. Buying Call Option of Nifty having Strike 5400 @
premium 200, Strike 5600 @ premium 80 and selling two lots of Call Option of Nifty having
Strike 5500 @ premium 130 will help the investor benefit if Nifty expiry happens at 5500.

Strategy Stock/Index Type Strike Premium

Long Call NIFTY(Lot Buy CALL 5400 200
Butterfly
size 50) (Outflow)
Sell CALL 5500 130
– 2 lots (Inflow)
Buy CALL 5600 80
(Outflow)

28
 Nifty @ Expiry Net Profit (rs)
5100 -1000
5200 -1000
5300 -1000
5400 -1000
5420 0
5500 4000
5580 0
5600 -1000
5700 -1000
5800 -1000
5900 -1000

In the above chart, the breakeven happens the moment Nifty crosses 5420 or 5580.
The reward is limited to 4000 [calculated as (Difference in strike prices - net premium paid) *
Lot Size]. The risk is limited to 1000 (calculated as Net premium paid * Lot Size).

29
 Short Call Butterfly

Short Call Butterfly is a strategy that must be devised when the investor is neutral on the market
direction and expects volatility to be significant in the market.

A Short Call Butterfly strategy is formed by buying two “At-the-Money Call” Options, selling
one “Out-of- the-Money Call” Option and one “In-the-Money” Call Option.

Compared to Straddle and strangle, this strategy offers very small returns. The risk involved is
slightly less as compared to them.

The investor will benefit if the underlying Stock/ Index finishes on either side of the upper and
lower strike prices at expiration.

Investor view: Neutral on direction and bullish on Stock/ Index volatility. Risk: Limited to
difference between adjacent Strikes – net premium received. Reward: Limited to the premium
received.
Lower breakeven: Strike price of higher Strike Short Call + net premium received. Higher
breakeven: Strike price of Lower Strike Short Call - net premium received.
Illustration
Eg. Nifty is currently trading @ 5500. Selling Call Option of Nifty having Strike 5400 @
premium 200, Strike 5600 @ premium 80 and Buying 2 lots of Call Option of Nifty having
Strike 5500 @ premium 130 will help the investor benefit if Nifty on expiry stays below 5400
or above 5600.

Strategy Stock/Index Type Strike Premium

Short Call NIFTY(Lot Sell CALL 5400 200
Butterfly size 50) (Inflow)
Buy CALL 5500 130
– 2 lots (Outflow)
Sell CALL 5600 80 (Inflow)

30
 Nifty @ Expiry Net Profit (rs)
5100 1000
5200 1000
5300 1000
5400 1000
5420 0
5500 -4000
5580 0
5600 1000
5700 1000
5800 1000
5900 1000

In the above chart, the breakeven happens the moment Nifty crosses 5420 or 5580. The reward
is limited to 1000 (calculated as Net premium received * Lot Size).
The risk is limited to 4000 [calculated as (Difference in strike prices - net premium received)
* Lot Size].

31
 Data Analysis and Interpretation

 Age group

Based on the data provided, the majority of people who attended the survey fall in the age
group of 18-25, with 28 responses out of 45. This is followed by the age group of 25-35, with
12 responses. The age group of 35-45 has 4 responses, and there is one response for the age
group above 45.
Overall, it can be inferred that the survey was more popular among younger adults aged 18-
25 and 25-35, while fewer people from the age group of 35-45 participated.

32
 Profession

Based on the data provided, the majority of people who attended the survey have identified
themselves as students, with 26 responses out of 45. There are 15 responses where
individuals have identified themselves as working professionals, and there are 4 responses
where individuals have identified themselves as business owners.
Overall, it can be inferred that the survey was more popular among students, while there were
also significant responses from individuals who are currently employed. The number of
responses from business owners was relatively low compared to students and working
professionals.

33
 Which platform do you use for trading

Based on the data provided, it appears that respondents have used a variety of platforms for
trading. Broking apps are the most popular choice among respondents, with 25 out of 45
respondents using them. This is followed by bank demats, which were used by 13
respondents. Broking firms were used by 7 respondents.

Overall, it can be inferred that broking apps are the most popular choice for trading among
the respondents of this survey. However, bank demats are also a popular choice, and a
significant number of respondents have used broking firms as well.

34
 What is your capital amount for trading in option

Based on the data provided, the capital amount for trading in option varies among the
respondents. The most common range is between 10,000 to 20,000, with 24 out of 45
respondents falling in this range. The next most common range is between 20,000 to 50,000,
with 18 respondents falling in this range. Respondents who trade with capital amounts of
more than 50,000 were 3.

Overall, it can be inferred that a majority of respondents trade in options with lower amounts
of capital, with 24 out of 45 respondents trading with a capital amount between 10,000 to
20,000. However, a significant number of respondents also trade with higher capital amounts,
with 21 out of 45 respondents trading with a capital amount greater than 20,000.

35
 How long have you been trading options?

Based on the provided data, it seems like the majority of respondents have been trading
options for 1 year or more, with a significant portion of them having more than 1 year of
experience.

36
 What types of option trading strategies have you used in the past?

Based on the data, it seems that the majority of the traders have used Buy Call and Spread
option trading strategies in the past. Other strategies that have been used include Buy Put,
Strangle, and Straddle. It's important to note that this is a small sample of traders and may not
be representative of option traders as a whole.

37
 How frequently do you implement option trading strategies in your trading?

Based on the responses, it seems like the frequency of implementing option trading strategies
varies among individuals, with some traders using them daily, others using them sometimes,
and some implementing them only once or twice in a month.

38
 What are the main factors you consider when selecting an option trading strategy?

It seems like the main factors the traders consider when selecting an option trading strategy
are market situation, capital, and mental stability. The market situation may refer to factors
such as current market trends, volatility, and news that may affect the stock's performance.
Capital is also crucial as it determines the risk appetite and investment amount. Mental
stability may refer to the trader's emotional and psychological readiness to handle the
potential gains or losses associated with the chosen strategy.

39
 What are your goals when implementing an option trading strategy?

It seems that your goals when implementing an option trading strategy are focused on safe
trades, profit earning, and learning from the trade. These are all valid and important goals to
consider when trading options. It's important to balance these goals and consider them in
relation to your overall trading plan and risk management strategy.

40
 How you cover the risk

It appears that you use a combination of proper study, stoploss, and hedging to
cover the risk of your option trading strategies. Proper study helps you make
informed decisions and mitigate risks by understanding the market situation and
the potential outcomes of your trades. Stoploss is a tool that allows you to set a
limit on your losses by automatically closing a position if the price moves
against you. Hedging involves taking a position that offsets the potential losses
of another position, reducing your overall risk. By using these methods, you are
taking proactive steps to manage risk in your trading.

41
 Discussion On the above strategies

1. Buy Call

The investor is bullish on the Nifty index and expects it to rise from its current level of
5500. So they buy a call option with a strike price of 5500 and a premium of 50. This means
that they pay 50 rupees per share (since the lot size is 50) for the right to buy Nifty at 5500
rupees per share at any time before the expiration date of the option.
The risk in this trade is limited to the premium paid of 50, which is the maximum amount
the investor can lose if the Nifty index does not rise above the strike price. However, if the
Nifty index rises significantly, the potential profit is unlimited, since the investor can sell
the Nifty shares in the market at a higher price than the strike price.
The breakeven point for this trade is the strike price of 5500 plus the premium paid of 50,
which equals 5550. If the Nifty index rises above 5550, the investor will start making a
profit on this trade.

2. Buy Put

The investor is bearish on the Nifty index and expects it to fall from its current level of
5500. So they buy a put option with a strike price of 5500 and a premium of 50. This means
that they pay 50 rupees per share (since the lot size is 50) for the right to sell Nifty at 5500
rupees per share at any time before the expiration date of the option.
The risk in this trade is limited to the premium paid of 50, which is the maximum amount
the investor can lose if the Nifty index does not fall below the strike price. However, if the
Nifty index falls significantly, the potential profit is unlimited, since the investor can sell
the Nifty shares in the market at a higher strike price than the market price.
The breakeven point for this trade is the strike price of 5500 minus the premium paid of 50,
which equals 5450. If the Nifty index falls below 5450, the investor will start making a
profit on this trade.

3. Sell Call

Selling a Call option is also known as a "covered call" strategy, where the seller of the Call
owns the underlying asset (in this case, the stock/index). By selling a Call option, the seller
is giving the buyer the right to buy the stock/index at a specific price (strike price) on or
before a certain date (expiration date).
If the stock/index price remains below the strike price, the Call option will expire worthless,
and the seller will keep the premium received. However, if the stock/index price rises above

42
the strike price, the seller will have to sell the stock/index at the lower strike price, which
means the seller will lose out on the potential profits from the rising stock/index price.
Therefore, selling a Call option is considered a bearish strategy since the seller is hoping
for the stock/index price to remain below the strike price. It can be a useful strategy for
investors who are not expecting significant price increases in the short term and want to
generate income from their existing stock/index holdings.
However, it's important to note that selling a Call option involves unlimited risk since the
stock/index price can rise significantly above the strike price, leading to substantial losses
for the seller. Therefore, it's crucial to have a plan in place to manage the risk and protect
against adverse market movements.

4. Sell Put

Selling a Put option is a strategy that can be used by an investor who is bullish on a stock
or index and expects the price to rise or at least remain steady. By selling a Put option, the
investor earns a premium upfront and can potentially profit if the stock price rises or stays
above the strike price.
However, this strategy comes with the risk of unlimited losses if the stock price falls
significantly below the strike price. In such a case, the investor may have to buy the
underlying asset at the higher strike price, leading to substantial losses.

5. Bull Call Spread

The investor is actually buying a call option with a lower strike price (5400) and selling a
call option with a higher strike price (5600). This is still a Bull Call Spread strategy, but
the call options in your example are switched compared to the typical Bull Call Spread
strategy where the investor buys the higher strike call and sells the lower strike call.
In this scenario, the investor is moderately bullish on the Nifty and expects it to rise from
its current level of 5500. By buying the 5400 call option, the investor has the right to buy
Nifty at 5400 if the stock moves up. By simultaneously selling the 5600 call option, the
investor is obligated to sell Nifty at 5600 if the stock price rises above that level. The
premium received from selling the 5600 call option helps to offset the cost of buying the
5400 call option, reducing the net premium paid and the breakeven point.
If the Nifty rises above 5600, the investor's profit potential is limited to the difference
between the strike price of the two call options minus the net premium paid. If the Nifty
remains between the two strike prices, the investor's profit potential is limited to the
premium received from selling the higher strike call option. If the Nifty falls below the
strike price of the 5400 call option, the investor's losses are limited to the net premium paid.
6. Bull Put Spread

43
Bull Put Spread is a good strategy for investors who are moderately bullish on the market
direction and are looking to earn a net credit (premium) and collect income. By buying an
"out-of-the-money" Put Option and selling an "in-the-money" Put Option with the same
expiration month and underlying security, the investor can limit their risk while still
benefiting if the market moves in their favor.
In the given example, the investor is selling a Put Option of Nifty with a Strike Price of
5600 at a premium of 150 and buying a Put Option of Nifty with a Strike Price of 5400 at
a premium of 50. The net premium inflow for the investor would be 100. The breakeven
point for the investor would be the Strike Price of the Short Put minus the net premium
received, which in this case is 5500. If Nifty stays above this level at expiration, the investor
will earn the premium received as profit.

7. Bear Call Spread

The Bear Call Spread is a limited-risk strategy suitable for investors who are moderately
bearish on the market direction. In this strategy, the investor simultaneously sells a lower
strike price Call option and buys a higher strike price Call option with the same expiration
date and underlying asset, thereby creating a net credit.
By using this strategy, the investor can benefit if the underlying asset falls in value, and the
credit earned from the spread can be used to offset any potential losses. However, the
maximum profit is limited to the net premium received, while the maximum loss is limited
to the difference between the strike prices minus the net premium received.
In the given example, the investor sells a Call option of Nifty with a strike price of 5400 at
a premium of 150, while buying a Call option of Nifty with a strike price of 5600 at a
premium of 50. This results in a net premium inflow of 100.
If Nifty stays below the strike price of 5400, both Call options expire worthless, and the
investor earns the net premium of 100 as profit. However, if Nifty rises above the strike
price of 5600, the investor will incur a maximum loss of (5600-5400-100) x lot size, which
is the difference between the strike prices minus the net premium received.
In conclusion, the Bear Call Spread is a limited-risk strategy that allows investors to benefit
from a bearish market view while limiting their downside risk.

8. Bear Put Spread

A Bear Put Spread is a good strategy for an investor who has a moderately bearish view on
the underlying security or index. By buying an In-the-Money Put Option and selling an
Out-of-the-Money Put Option, the investor can reduce the cost of buying the long Put
option and limit their risk. However, the reward is limited as well, since the profit potential
is capped at the difference between the strike prices minus the net premium paid. It's

44
important for investors to carefully consider their risk appetite and view on the market
before employing any options trading strategies.
In the given example, if Nifty falls below 5400, the investor will make a profit on the
spread. The breakeven point is at the strike price of the Long Put minus the net premium
paid. If the Nifty falls below the breakeven point, the investor will start making a profit.

9. Long Call Butterfly

The Long Call Butterfly strategy is a neutral strategy that is used by investors who expect
the underlying asset to remain stable or within a particular range. The strategy involves
selling two at-the-money call options and buying one in-the-money call option and one out-
of-the-money call option.
One of the advantages of this strategy is that it limits the investor's losses while still
providing the opportunity for a limited profit. However, the potential profit is also limited.
In the example given, the investor is buying a call option with a strike price of 5400 and a
premium of 200, buying a call option with a strike price of 5600 and a premium of 80, and
selling two call options with a strike price of 5500 and a premium of 130. If the Nifty
remains at 5500 at expiration, the investor will benefit from the premiums received from
selling the call options and the long call option at 5400 will expire worthless while the long
call option at 5600 will have some value left.
The lower breakeven point for the strategy is calculated as the strike price of the lower
strike long call plus the net premium paid, while the higher breakeven point is calculated
as the strike price of the higher strike long call minus the net premium paid.

10. Short Call Strategy

The Short Call Butterfly is a neutral strategy that is used when an investor expects the
underlying asset to experience significant volatility. It involves buying two At-the-Money
Call Options, selling one Out-of-the-Money Call Option, and one In-the-Money Call
Option.
The risk in this strategy is limited to the difference between the adjacent strikes minus the
net premium received, while the reward is limited to the premium received. The investor
will benefit if the underlying asset finishes on either side of the upper and lower strike
prices at expiration.
In the given example, the investor is selling a Call Option of Nifty having a Strike of 5400
@ premium 200, buying 2 lots of Call Option of Nifty having a Strike of 5500 @ premium
130, and selling a Call Option of Nifty having a Strike of 5600 @ premium 80. This will
help the investor benefit if Nifty on expiry stays below 5400 or above 5600.

45
 Conclusion

1. Long Call: This strategy is suitable for investors who are bullish on the underlying
asset's direction and expect its price to rise in the short-term. The investor's potential
reward is unlimited, while the risk is limited to the premium paid for the call option.

2. Short Call: This strategy is suitable for investors who are bearish on the underlying
asset's direction and expect its price to remain relatively stable in the short-term.
The investor's potential reward is limited to the premium received for selling the
call option, while the risk is unlimited.

3. Long Put: This strategy is suitable for investors who are bearish on the underlying
asset's direction and expect its price to fall in the short-term. The investor's potential
reward is unlimited, while the risk is limited to the premium paid for the put option.

4. Short Put: This strategy is suitable for investors who are bullish on the underlying
asset's direction and expect its price to remain relatively stable in the short-term.
The investor's potential reward is limited to the premium received for selling the
put option, while the risk is limited to the strike price minus the premium received.

5. Bull Call Spread: This strategy is suitable for investors who are bullish on the
underlying asset's direction but want to limit their potential losses. The investor's
potential reward is limited, while the risk is limited to the difference between the
strike prices minus the net premium received.

6. Bull Put Spread: A Bull Put Spread can be a useful strategy for investors who are
moderately bullish on the market direction and want to limit their downside risk.
By buying an Out-of-the-Money Put Option and selling an In-the-Money Put
Option, the investor can potentially earn a profit if the underlying security rises in
value, while also limiting their losses if the security falls in value. It is important to
note that while the risk is limited, the potential reward is also limited in this strategy.

7. Bear Call Spread: It is a popular options trading strategy used by investors who
have a moderately bearish view on the market direction and expect the underlying
asset to decline in the short-term. It involves buying an Out-of-the-Money Call
Option and selling an In-the-Money Call Option with the same underlying security
and expiration month. The investor pays a net premium, and the maximum profit is
limited to the net premium received, while the maximum loss is limited to the
difference between the two strike prices minus the net premium received. The
breakeven point is the strike price of the sold call option plus the net premium paid.

46
 8. Bear Put Spread: This strategy is suitable for investors who are moderately bearish
on the underlying asset's direction and expect its price to fall in the short-term. The
investor's potential reward is limited, while the risk is limited to the net premium
paid.

9. Long Call Butterfly: This strategy is suitable for investors who are neutral on the
underlying asset's direction but expect volatility to be low in the short-term. The
investor's potential reward is limited, while the risk is limited to the premium paid
for the options.

10. Short Call Butterfly: This strategy is suitable for investors who are neutral on the
underlying asset's direction but expect volatility to be high in the short-term. The
investor's potential reward is limited, while the risk is limited to the difference
between the adjacent strike prices minus the net premium received.

Overall, the success of each strategy depends on a variety of factors, including market
conditions, volatility, and the underlying asset's price movements. It's important to
thoroughly understand the risks and rewards of each strategy before making any investment
decisions.

47
 Bibliography
1. WWW.NSE.In National Stock Exchange of India (NSE): NSE has a dedicated
section on its website that provides resources on options trading strategies,
including webinars, e-books, and articles.
2. Option Trading Tips: Option Trading Tips is a website that provides various
resources on options trading, including educational articles, trading tips, and trading
strategies.
3. WWW.BSE.in BSE website: The Bombay Stock Exchange (BSE) also provides
information on options trading on its website. You can find articles, research
reports, and other resources related to options trading on the BSE website.
4. WWW.Investopedia.in : Investopedia is a global financial education platform that
provides articles, tutorials, and courses on various investment options, including
options trading.
5. www.Cboe.in The Cboe website provides information on options trading, including
trading strategies, options pricing, and market analysis.
6. www.OptionsPlaybook.in : This website offers a comprehensive guide to options
trading strategies, from basic to advanced levels. It also provides examples of real-
world trades and interactive tools to help you understand options trading.
7. "Options as a Strategic Investment" by Lawrence G. McMillan: This book is
considered a classic in the field of options trading and covers a wide range of
strategies, including covered calls, spreads, and straddles.
8. "The Bible of Options Strategies" by Guy Cohen: This book provides a
comprehensive overview of options trading strategies, including detailed
explanations of popular strategies like butterflies, condors, and iron butterflies.
9. "Trading Options Greeks: How Time, Volatility, and Other Pricing Factors Drive
Profits" by Dan Passarelli: This book focuses on the use of Greek symbols (such as
delta, gamma, and theta) to understand and develop options trading strategies.
10. "Option Volatility and Pricing" by Sheldon Natenberg: This book is a
comprehensive guide to understanding the impact of volatility on options pricing
and trading strategies.
11. "The Options Playbook" by Brian Overby: This book is a practical guide to options
trading, offering clear explanations of basic and advanced strategies, as well as
examples of real-world trades.

48
 Annexure
 Age
18 - 25
25-35
35-45
45 & above
 Profession
Student
Business
Job
 which platform do you use for trading
Broking Firm
Broking Apps
Bank Demats
 What is your capital amount for trading in option
10000-20000
20000-50000
more than 50000
 How long have you been trading options?

1 year
More Than 1 year
 What types of option trading strategies have you used in the past?

Buy Call
Buy Put
Spread
Straggle

49
  How frequently do you implement option trading strategies in your trading?
Daily
Sometimes
Once or Twice in the whole month
 What are the main factors you consider when selecting an option trading strategy?

Market Situation
Capital
Mental Stability
 What are your goals when implementing an option trading strategy?

Profit earning
Safe trade
Learning from the trade
 How you cover the risk
proper study
stoploss
Hedging the trade

50