1. What is the difference between call and put options?

A call option gives you the right, but not the obligation, to buy a stock or index at a fixed price before expiry. A put option gives you the right to sell it at a fixed price. Calls are used when you expect prices to rise, while puts benefit when you expect a fall.

2. How do you read an option chain?

>An option chain lists all available calls and puts contracts for a specific stock or index. It shows data like strike price, premium, open interest, volume, and implied volatility.

3. What are Option Greeks and why do they matter?

Option Greeks, Delta, Gamma, Theta, Vega, and Rho, measure how your option’s price reacts to changes in market factors such as price movement, volatility, time decay, and interest rates. Tracking Greeks helps you understand risk, timing, and potential price changes before entering a position.

4. Why do margins change on expiry day?

On expiry day, exchanges adjust SPAN and Extreme Loss Margins more frequently due to rapid price movements and contract unwinding. This can increase capital requirements for traders with short positions and make early exits or proper hedging important to avoid margin shortfalls.

5. Which platform is best for beginners to trade options in India?

For new traders, Dhan offers real-time option chain data, live Greeks, and an integrated strategy builder. All of this is essential for learning and trading options safely.

Option trading basics: A beginner’s guide

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Option Trading

Option trading basics: A beginner’s guide

Option Trading

Option trading basics: A beginner’s guide

Options trading - no matter how much you learn, it will always feel you have missed something. But, there's always a start point for beginners - this is it!