how to decise whether to buy call options or put options?

#1
what are the factors to be considered in deciding between the buying of call options and put options?
what type of options are more risky whether call options or put options?

thanks in advance
 

MSN1979

Well-Known Member
#2
Good questions. I hope someone on traderji starts from scratch and Cover this topic.
 

MSN1979

Well-Known Member
#3
According to me buy call when you are bullish and sell puts when you are bearish :) Rest lets wait for expert explain further
 

traderniftybull

Well-Known Member
#4
According to me buy call when you are bullish and sell puts when you are bearish :) Rest lets wait for expert explain further
no, sell puts is bullish
if one is bearish, then either buy puts or sell calls
but selling options (known as writing options), need a margin almost equal to future trading and is risky for a retail trader, unless he knows what he is doing.
 

MSN1979

Well-Known Member
#5
no, sell puts is bullish
if one is bearish, then either buy puts or sell calls
but selling options (known as writing options), need a margin almost equal to future trading and is risky for a retail trader, unless he knows what he is doing.
I didn't knew that its so confusing
 

kainiteh

Well-Known Member
#6
Simple answer is knowing market direction
Buy side..... Call UP, Put DOWN
Sell side... Vice versa of Buy side
 
#7
i refine my second questions in this way
As there is a trading in both call options and put options contemporaneously, different investors have different types of opinion about the future trends in underlying asset market.
forecasting what type of market trend( either bearish or bullish) is more risky?