Lets simply try and understand the basic things of Options because I believe with todays dynamic world of Stock market, its important to use options for maximising the returns and its not as difficult as it may seem.
Options are of two types. 1. Call Option and 2. Put Option.
Calls:
If one expect markets or any other stock to go up, they Buy calls. If the indices or stock moves up, the option price will also react accordingly. Calls = Bullish
Puts:
Vice versa, Puts are bought when one thinks markets or stock can move down, If they do, you make money on Puts = bearish.
Please Note:
Coming days, I shall give some options calls to Mumbaibull's as well, so its important for one to atleast know the basics so that none of you misses anything. Remember, options if you have timed it right, it fetches great returns. Though this doesnt means that one should go over board and do things.
Happy Investing!