Bull Call Spread

Podcast Duration: 06:36
Doston, share market mein risks are a reality and size does matter. Tumhare stock mein agar zyaada shares hain, toh correspondingly tumhara profit (ya loss depending on how the share market swings) bhi utna zyaada rahega.

Paisewalle wale logon ke liye bhi investing in stocks can sometimes be challenging and scary. All the more so for the aam aadmi… toh hum jaise regular, salary-earning log kya kar sakte hai? ...if we want to earn in the stock market, lekin risk bhi kam rakna chahte hai?

Actually yeh risk-profit balance manage karne ke liye stock market main dher saare tareeke hai. Ek tareeka hai investing in Options. Investors apne risk kam rakne ke liye Options contracts le sakte hai.

Toh pehle dekhte hain an introduction to options,

aur next hum Call Options ko define karenge.

Uske bad main main aapkk Call Spread samjhata hoon.

Phir hum specifically focus karenge Bull Call Spread pe.

So, are you ready to learn the art of making profits in Bull Call Options?

Part 1:
Pehle dekhte hain what are Options in the stock market?

Agar aapne thoda bohot stock market research kiya hai, phir apne toh F&O ya Futures & Options ka naam suna hi hoga. Hum aaj ussi Options ke baare me seekhenge.

Options rehte hai financial contracts jis se options contract lenewalon ko securities khareedhne ya bechne ka right (yaani ke hakk) deta hai - options contract lenewalon ko yeh securities (jo stocks bhi ho sakti hai ya bonds ya commodities) ek predetermined date aur predetermined price par bechne padenge.

Options ka value woh security se aata hai - yaani ki the value of the option is derived from the security mentioned in the options contract. (Vaise... that is why they come under a stock market investment category called derivatives.) Traders woh security ke honewale price predict kar ke predetermined price set karte hain. If the trader anticipates a price increase and the price does increase, phir trader ko profit milta hai. Agar price ulta decrease ho gayi toh trader ko loss ho sakta hai.

Part 2:
What are call options?

Options do kisam ke rehte hai; woh hai Call Options, Put Options.

Call Options, jis ke baare mein mai aaj jankari de raha hu, rehte hai contracts jis me trader ko khareedhne ka right hai. Contract mein mention kiya jata hai the price and the specific date jis ke pehle the buy needs to take place.

Put Options rehte hai contracts jis me trader ko bechne ka right hai. Contract mein mention kiya jata hai the price and the specific date jis ke pehle the sale needs to take place.

Call Options trader - ya investor - ko yeh benefit deta hai Kyun ki it allows for decent exposure at both… A low risk AND For a short period of time.

Simple words mein, traders ko profits ki achhi chances hai aur woh bhi kam risk aur kam lock-in period ke saath.

Lekin itna asaan tha toh everybody would be rich.

Trader ko losses bhi ho sakte hain if the stock pricd does not reach unke contract mein likha hua predetermined price by the predetermined date. Simple words mein batata hoon - toh traders ka poora premium sum loss mein ja sakta hai.

This brings us to….

Part 3:
What is call spread?

To beat this possibility of loss, smart traders strike price ko predict karne ka simple approach istimal karthe hai. Traders same time pe, same security pe different strike prices ke options ka contract lete hai. Iss approach ko kehte hai vertical call spread.

And now for our final part 4:
Bull Call Spread kya hota hai?

Aap toh janthe hoge ki Bull market means a market that is in a state of buying stocks (balki Bear market mein traders are offloading stocks).

Toh we can safely expect that Bull Call Spread will have something to do with calculatedly aggresive buying.

Well, vertical call spread ke do kisam hote hai. Woh hai Bull Call Spread aur Bear Call Spread.

Bull Call Spread approach mein investor kahi options ko ek chosen strike price pe khareedhte hai. Phir investor woh same number of options ko same expiration date pe higher strike price pe bechte hai.

Bear Call Spread approach mein investor kahi options ko ek chosen strike price pe khareedhte hain. Phir investors woh same number of options ko same expiration date pe lower strike price pe bechte hai.

Bull Call Spread define karte samey ek baat pehle se samajhni padegi. Options khareedhte vakt premium amount zyaada rehta hai. In comparison bechthe samey premium kam rehta hai. Iski vajah yeh hai ki khareedhthe samey thoda bohot upfront investment karna hi padtha hai. Issi ke karan Bull Call Spread ka doosra naam hai Debit Call Spread.

Terminology ke topic pe, teen aur terms jaanne zaroori hai. Long call, short call aur call legs. Haanji. Call ...legs.

Options jab low price pe khareede jate hai, usse kehte hai long call. Options jab higher price pe beche jate hai, usse kehte hai short call.

Long call aur short call ko bolte hai call legs of the spread.

Jab options ka premium bohot zyaada hota hai, tab Bull Call Spread traders ko losses kam rakne ka acha tareeka hai kyunki trader ke losses sirf premium spent and premium recovered ke difference mein limit ho jate hai.

Lekin yeh bhi hai ki the amount of profits jo mil sakte hai, woh bhi strike price tak Limited rahenge.

Cautious traders khareedhne waale strike price or bechnewale strike price ka difference kam rakte hai. Un ke risks kam rehte hai aur simultaneously un ke profits woh difference tak Limited hai.

Ambitious traders khareedhne waale strike price or bechnewale strike price ka difference zyaada rakte hai. Un ke risks zyaada rehte hai aur simultaneously un ka profit potential bhi zyaada hai.

Ab samaj mein aaya Bull Call Spread aur uske benefits? Lekin beneficial cheez ki bhi minus points ho sakti hai.

Bull call Spread mein poora premium khone ka risk hai agar the security does not reach the predetermined price by the predetermined date. High profits bhi milne ki kam chances hai.

Basically Bull Call Spread is a good option but in some specific situations and most importantly, doston, only with the right expertise.