Part 2 Master Candle Sticks Pattern

Introduction to Options Trading

In the world of financial markets, options trading is considered one of the most powerful and flexible forms of trading. Unlike simple stock buying and selling, options allow traders to control larger positions with less capital, hedge their risks, and design strategies that fit different market conditions — bullish, bearish, or even sideways.

An option is essentially a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specific price (called the strike price) within a given period of time.

If you buy an option, you are purchasing a right.

If you sell (or write) an option, you are giving someone else that right and taking on an obligation.

Options are traded on stocks, indexes (like Nifty 50 or Bank Nifty in India), commodities, currencies, and even cryptocurrencies in some global markets.

They are widely used by:

Investors to hedge portfolios.

Speculators to make money from price moves.

Institutions to manage large exposures.