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Understand Options trading in Hindi – call option, put option, premium, strike price, expiry. Step-by-step complete guide for beginners.
Published by The Retail Trader · AUG 12, 2026 · Features
Understand Options trading in Hindi – call option, put option, premium, strike price, expiry. Step-by-step complete guide for beginners.
Options are a derivative contract that gives you the right (not obligation) to buy or sell a stock/index at a pre-decided price — until a specific date (expiry).
Simple example:
• Reliance current price: ₹2,850
• Do you think Reliance will go to ₹2,900 next week?
• You buy a call option of ₹2,900 strike at ₹30 premium.
• If Reliance becomes ₹2,950 → Your profit = ₹50 - ₹30 = ₹20 per share
• If Reliance stays at ₹2,850 → Your loss = ₹30 (premium only)
Key terms:
• Call Option: Right to Buy (bullish)
• Put Option: Right to sell (bearish)
• Strike Price: Pre-decided price
• Premium: The price of the option (what you pay)
• Expiry: Date when the contract expires (Tuesday for NSE)
• Lot Size: How many shares in a contract (e.g., Nifty 50 = 50 shares/lot)
Call Option (Bullish View):
• You expect the price to go up
• You buy "right to buy" by paying premium.
• Profit: The amount the price goes above Strike price + premium
• Loss: Limited to premium paid
• Example: Nifty at 24,600. Buy 24,700 CE (Call Expiry) at ₹80. If Nifty goes to 24,800 → profit = (24,800 - 24,700) - 80 = ₹20 × 50 = ₹1,000
Put Option (Bearish View):
• Do you expect the price to go down?
• You buy "right to sell" by paying premium.
• Profit: Strike price – the amount the price goes below the premium
• Loss: Limited to premium paid
• Example: Nifty at 24,600. Buy 24,500 PE (Put Expiry) at ₹60. If Nifty goes to 24,400 → profit = (24,500 – 24,400) – 60 = ₹40 × 50 = ₹2,000
Premium is made up of 2 things:
1. Intrinsic Value:
• Call: Max(0, Spot Price - Strike Price)
• Put: Max(0, Strike Price - Spot Price)
• Example: Nifty 24,600, Strike 24,500 CE → Intrinsic = 100
2. Time Value:
• Premium - Intrinsic Value
• More time remaining = more time value
• Time value near expiry = 0 (theta decay)
ITM, ATM, OTM:
• ITM (In The Money) — Call Option: Spot > Strike, Put Option: Spot < Strike
• ATM (At The Money) — Call Option: Spot = Strike, Put Option: Spot = Strike
• OTM (Out of The Money) — Call Option: Spot < Strike, Put Option: Spot > Strike
Beginners tip: Buy ATM or lightly ITM options. OTM is cheaper but probability of profit is less.
Delta — Price Movement:
• Delta = How much premium will change when the underlying moves ₹1
• Call Delta: 0 to 1 (typical 0.3-0.7)
• Put Delta: 0 to -1
• Delta of ITM options is higher, OTM is lower
Theta — Time Decay:
• How much does the premium decrease every day?
• Theta is always negative (for option buyers)
• Theta accelerates near expiry
• Tip: OTM options premium = near zero on Thursday
Vega — Volatility Impact:
• Volatility badhe → premium badhe (both calls and puts)
• Vega = How much premium will change when volatility increases by 1%
• High volatility = expensive options
Gamma — Change in Delta:
• Gamma = Delta How much will change when the price moves ₹ 1
• gamma highest of ATM options
• Advanced concept — ignore ok for beginners
Strategy 1: Long Call (Simplest):
• Buy 1 Call Option
• View: Bullish
• Max loss: Premium paid
• Max profit: Unlimited
• Best when: Strong uptrend + low volatility
Strategy 2: Long Put:
• Buy 1 Put Option
• View: Bearish
• Max loss: Premium paid
• Max profit: Strike - Premium (limited)
• Best when: Strong downtrend + low volatility
Strategy 3: Covered Call:
• Hold 100 shares + Sell 1 Call Option
• View: Neutral to slightly bullish
• Extra income from premium
• Best for: Long-term investors wanting extra income
Strategy 4: Bull Call Spread:
• Buy 1 ITM Call + Sell 1 OTM Call
• View: Moderately bullish
• Lower cost than plain call buy
• Max profit: Difference between strikes - net premium
• Best when: You expect limited upside
Rule 1: Always put SL:
• Option premium SL: 30-50% of premium
• Buy at ₹100? SL at ₹50-70
• SL is important in options — theta decay causes continuous loss.
Rule 2: Do Not Buy OTM Options (Beginners):
• OTM looks cheap but 80% OTM options expire worthless
• buy ATM or lightly ITM
• OTM only for experienced traders (hedging, spreads)
Rule 3: Careful on Expiry Day:
• Tuesday = expiry day for NSE options (stock options: last Tuesday of the month)
• Theta decay fastest on expiry day
• Premium can go to zero in hours
• Beginners: Don't trade on expiry day
Rule 4: Position Size Control:
• Max 5-10% capital risk per trade in Options
• ₹1,00,000 capital → max ₹5,000-10,000 per options trade
• Options can go to zero — position size accordingly
Rule 5: Hedging Sekho:
• Naked options buying = risky
• Spreads (bull call, bear put) = lower risk
• Hedging = buy one option + sell one = lower cost + lower risk
Keep these six points in mind:
• Buying cheap OTM — "₹5 option will double" — 90% chance will become zero
• Holding on expiry – OTM options = zero on Thursday
• buy options without SL — Theta + adverse movement = total loss
• Trade options every week — keep options frequency low. 2-3 trades/week max.
• Naked selling (short options) — Unlimited risk. Beginners NEVER sell options.
• Ignoring lot size — Nifty 1 lot = 50 shares. ₹80 premium = ₹4,000 total. Calculate before buying.
Minimum ₹50,000-1,00,000. Capital loss risk is high in options, hence adequate capital is necessary.
Delivery/swing trading is better for beginners. Options are advanced — first learn the basics, then try options.
Nifty options better for beginners — high liquidity, less manipulation. Stock options also have specific stock risk.
Hey! There are options on TRT index details page. Nifty 50 options data is available. theretailtrader.org/index-details/NSEI
Yes, but discipline + risk management + strategy is necessary. 90% of options traders lose money because they gamble, not trade.
Learn more on TRT: theretailtrader.org/blog Option chain data: theretailtrader.org/index-details/NSEI Pro (intraday + alerts): theretailtrader.org/pricing — ₹2,499/mo Telegram: @theretailtrader_in
Educational only. Options trading involves substantial risk. NOT investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.