IN the
share market, a holder buys an underlying asset at a certain price for a stipulated period of time. It is called the call option. The trader buys the
call option hoping for a rise or selling and the share bought does not meet the
strike price before the expiration date the option expires.
The
strategy:
This calloption the customer the benefit of controlling the stock without actually
owning it. Long call gets more gain if the stock goes up and it fails if the
stock price is less than the strike price. In any case the maximum risk the customer will face is an equal premium paid for the call.
A long call strategy is the simplest way to benefit out
of the market for the investor buys the shares with hope for rising in the
price. The Bombay stock exchange offers this option. In the long call, strategy risk is limited. The only drawback of this
option is the time delay. Hence if you lose time you will lose values of the
option bought.
Opportunities
for profits:
Traders, Who take part in the changing market scenario
and are looking for profits master the intraday trading strategy. Some traders
even employ analysts to help them in monitoring the market and ensure profit.
