PCR Trading Strategy

How Beginners Can Start

Learn basics of Call, Put, Strike Price.

Practice with paper trading before real money.

Start with simple strategies (like Buying Calls/Puts).

Avoid Option Writing (selling) initially — it’s risky.

Slowly learn Greeks, volatility, strategies.

Regulatory & Market Aspects (India Example)

Options in India are traded on NSE & BSE.

Lot sizes fixed by exchanges.

Weekly & Monthly expiries available.

SEBI regulates to ensure safety.

Margins required especially for Option Writing.

Famous Stories in Options Trading

Hedging by Corporates → Big companies use options to hedge currency & commodity risks.

Speculators → Many traders have made fortunes (and huge losses) in options because of leverage.

Example: Traders during COVID crash used Put Options and made huge profits.