Well, many of you are interested in learning option trading. Well, today I would like to give you a commitment. A commitment has come from my side that you are going to get a series which is free in which you will learn from basic to advanced option trading. I am assuming that you are at the base level. Today you have decided that you have to learn option trading in detail, but you stay with me in this series. Series means that you will not get just one video, but you will get many videos online for free on YouTube. What will be the benefit of this? Advantage number one will be that you are available on YouTube. You can watch these videos anytime according to your time. The second thing is that if you go to trading without learning, then you consider it like a double-edged sword. Double-edged means that there are many chances of loss in it. If you do any work without learning, then you can suffer loss. When we talk about trading, you invest your real capital and trade with money, then you cannot take loss here. If you suffer a huge loss, many people get stressed and this is the story of most people that people are suffering losses. We will try to teach you in such a way that you can minimize your loss and maximize your profit. This is our goal. My big principle is clear that whether you make money or not, it should not be less, but there should be no loss. Do not take the wrong trade. So what do you need to learn for this? You will get to learn in the entire series. Now since this is a series, the most important thing in this is that we are going to teach you many strategies. You will get to learn many option strategies, especially those strategies that I use myself. In fact, I will tell you the adjustments of those strategies. Sometimes it may happen that the market does not move according to you. So it is not necessary that it moves according to you. Your strategy may fail. So if your strategy fails, you will also be taught how to save your sinking boat. So whatever I am going to tell you, I will explain it in such a way that if a child is studying in class 6, then he will understand it. So now we are talking about class 6.
A child is studying in class 6. Now if I write it as option trading, then the fastest money is made in the stock market in option trading and the fastest money is lost in option trading. So you have to understand that if you do it without learning then the chances of losing are very high and 90% of the people are losing their money in option trading. That is why most retailers are not able to earn money. Now if you want to earn money, what do you need to know for that? So let’s start. First of all, let’s explain the concept. What is option trading? By now you must have heard that you just buy stocks. We know that in the stock market we buy shares of the company. If the price of the share increases then we make a profit. If the price of the share falls then we suffer a loss. Everyone knows this basic understanding. There are many factors involved in this. What are the factors? Suppose you have bought a share of a company. For example you have bought a share of Reliance. Now if the share of Reliance increases, then you will get profit. For example, in your portfolio, there is a share of Reliance worth Rs 10 lakh. Now I am taking the example of 10 lakh because if Reliance breaks from here, suppose Reliance breaks 10%. So if Reliance breaks 10%, then my 10 lakh will also lose 10%. So if there is a loss of 10%, then you may lose 1 lakh. Now I do not want to lose 1 lakh. So you have an option. We are not talking about futures right now. So people understand about futures. Now we are talking about option trading. So we will directly focus on the option. So you have an option available. The option is that if you fear that the price may fall, then you can buy a put option. Similarly, if you want an option that if the price of Reliance increases, I will get more profit. So you buy the option, as I said, you buy the put option, so what happens with this? This is hedging. What is hedging? If the price of Reliance falls and you have a large number of put options available, then as the price of Reliance falls, you will get profit here. This means that even if the price of Reliance falls, you will still get profit in the put option. So for this you will definitely have to pay a premium. Like we take insurance. The price of the car is Rs 50 lakh. The price of insurance is Rs 50,000. So why should we pay Rs 50,000? If a car worth Rs 50 lakh is stolen, damaged or crashed, then the loss of Rs 50 lakh is not there. So we pay Rs 50,000. Similarly, the put option will not be available for free. You will have to pay some price for it. Now what is the price? In this series, we will find out what happened.