What is the other name for option trader?

Option is otherwise known as insurance for an investor who are buying shares of any companies

from the share market and selling it for profit when their shares goes up.

An option is a contract that you can purchase that gives you the right to buy or sell stock at an agreed

price on or before at particular expiration date .You can also sell an option contract where you would be

selling this rights of option to someone and collecting a premium for it.

There are two types of option . They are:

1) Call option

2) Put option

1) Call option:

Call option is a type of option that gives the option holder the right to buy stocks from share

markets at an agreed upon price on or before a particular date.( For example): Let say you bought a call

option so you are the option holder now at a strike price of 1200 Rs for this option with an expiration

date of 30 days for the day of your purchase. Owing a call option allows you to purchase the stock at the

price of 1200 Rs per share anytime within the 30 days of expiration period. Even if the stocks price climbs

upto 1500 per share. You can buy the share at 1200 Rs because of the call option you purchased.

2) Put option:

Put option is a type of option that gives the option holder the right to sell stocks from the share

market at an agreed upon price on or before a particular date of expiration of the option. ( For example):

Let's say you bought a put option. Now you are a put option holder, At a strike price of Rs.1500 you are

buying a stock with the 30 day expiration day for the put option you purchased. Owing a put option

allows you to sell the stock at the price of 1500Rs per share anytime within the 30 days of expiration

period even if the stocks drops to 1100 Rs per share you can sell the share at 1500 Rs because of the put

option you purchased.

Option trader:

An option trader is a person who can make profit by buying and selling options to the investor.

You can become a option trader by

* bachelor degree

* account on option trading system.

* buy option and predict their strike price and sell the option.

The average salary for a option trader is Rs.26,613 in our country.eg: One of the successful trader

in India is Rakesh Jhun Jhunwala is also known as our own warren buffet who invested Rs. 5000 as a

capital amount in 1985 has a capital of 11,000 crore in 2018.