Short Call and Long Put

[narainhere]

Hi,
This is my first post here:thumb:, already learn t a few things from the discussions. Here is my Understanding of the options

Call - A Contract which you gives you a right to buy a specified number of stocks (lot) at a specific price at anytime before the contract expires.

Put - A Contract which you gives you a right to sell a specified number of stocks (lot) at a specific price at anytime before the contract expires.


Now as with stocks we can short the Call and Put, so I want to know in simple terms and probably with an example the difference between and short call and long put and vice-versa.

I have a few more queries like if I buy a call with NIFTY can I trade it just like stocks? If so what would be my profit? TIA

TIA

 

[hills_5000]

I would suggest you read through investopedia.com or some other site which explains not just basics of options but also how to use them before you even think about getting into them.

After reading , if you have any doubts you can raise them in another thread`which already exists at TJ.

regards

Hi,
This is my first post here:thumb:, already learn t a few things from the discussions. Here is my Understanding of the options

Call - A Contract which you gives you a right to buy a specified number of stocks (lot) at a specific price at anytime before the contract expires.

Put - A Contract which you gives you a right to sell a specified number of stocks (lot) at a specific price at anytime before the contract expires.


Now as with stocks we can short the Call and Put, so I want to know in simple terms and probably with an example the difference between and short call and long put and vice-versa.

I have a few more queries like if I buy a call with NIFTY can I trade it just like stocks? If so what would be my profit? TIA

TIA