Part 11 Trading Master Class

How Call Options Work

A Call Option gives the buyer the right to buy the underlying asset at the strike price.

You buy a call when you expect the market to go up.

Example:
Nifty at 22,000
You buy 22,200 CE at ₹50 premium.

If Nifty moves to 22,400, the call becomes valuable.
Intrinsic value = 22,400 – 22,200 = ₹200
Profit = 200 – 50 = ₹150

But if Nifty stays below 22,200, your call expires worthless and you lose the premium.

Risk = ₹50
Reward = unlimited