Part7 Trading Master Class

Option Chain Key Terms
Let’s go deep into each term one by one.

Strike Price
The predetermined price at which you can buy (Call) or sell (Put) the underlying asset if you exercise the option.

Every expiry has multiple strike prices — some above the current market price, some below.

Example:
If NIFTY is at 19,500:

19,500 Strike → ATM (At The Money)

19,600 Strike → OTM (Out of The Money) Call, ITM (In The Money) Put

19,400 Strike → ITM Call, OTM Put

Expiry Date
The last trading day for the option. After this date, the contract expires worthless if not exercised.

In India:

Index options (like NIFTY, BANKNIFTY) → Weekly expiries + Monthly expiries

Stock options → Monthly expiries

3.3 Call Option (CE)
Gives you the right (not obligation) to buy the underlying at the strike price.

Traders buy calls when they expect the price to rise.

3.4 Put Option (PE)
Gives you the right (not obligation) to sell the underlying at the strike price.

Traders buy puts when they expect the price to fall.