Learn options trading, the Indian way
Short guides on how index options work on NSE and BSE: what they cost, when they expire and where the risks are. Education only, no tips.
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What options are, how they expire and what they cost in India.
Call and put options in India, explained
What a call (CE) and a put (PE) are, how lots and premiums work on Nifty and Sensex, and what a buyer and a seller can win or lose.
7 min read
How option expiry works in India
Which index options expire on which day, why Nifty expires on Tuesday and Sensex on Thursday, and what changes on expiry day.
6 min read
Why most F&O traders in India lose money
What SEBI's study of individual F&O traders found for FY26, and the mechanics behind the losses: costs, time decay and position size.
6 min read
Every charge on an options trade in India
Brokerage, STT, exchange transaction charges, SEBI fee, stamp duty and GST on index options, with a worked example per lot.
5 min read
Buying vs selling options: premium, margin and risk
Why option sellers need margin of lakhs per lot, why buyers lose to time decay, and what each side can lose.
6 min read
Is forex trading legal in India?
What Indian residents may trade under RBI rules, why offshore forex and CFD apps are not allowed, and how to spot an unauthorised platform.
5 min read
Options guides
Greeks, volatility, the option chain, open interest and margin.
Option Greeks explained: delta, gamma, theta, vega and rho
What each Greek measures, in rupees per Nifty lot, with one worked example that ties them together.
9 min read
Option delta explained, in rupees per lot
What delta means for a Nifty option, how it changes with strike and time, and how traders use it to think about hedging.
7 min read
Theta and time decay in weekly options
How time decay works on Nifty weekly options, why it speeds up as Tuesday expiry nears, and what that means for buyers and sellers.
7 min read
Implied volatility and India VIX explained
What implied volatility is, how it moves an option's premium, and what India VIX measures (and does not).
8 min read
How to read an option chain on NSE
Every column of the NSE option chain explained: OI, change in OI, volume, IV, LTP, bid and ask, and the shaded in-the-money strikes.
8 min read
Open interest explained: OI, volume and buildup
What open interest counts, how it differs from volume, and what long buildup, short buildup, short covering and long unwinding mean.
7 min read
Put-call ratio (PCR) explained
How PCR is calculated from open interest or volume, how to read it, and why it is not a trading signal on its own.
6 min read
Max pain explained: how it is calculated and its limits
What the max pain strike is, how to calculate it from an option chain step by step, and why it is a weak predictor of where expiry settles.
6 min read
ITM, ATM and OTM options: moneyness explained
What in the money, at the money and out of the money mean for calls and puts, with a Nifty example and how moneyness changes premium and risk.
6 min read
Option premium: intrinsic value and time value
How an option premium splits into intrinsic and time value, what drives each part, and how both change towards expiry.
6 min read
Margin for option selling in India: SPAN, exposure and the 50% cash rule
How margin for selling options is set (SPAN plus exposure), peak margin rules, the extra ELM on expiry day, and pledging shares under the 50% cash rule.
9 min read
Physical settlement of stock options in India
Why NSE stock options settle in shares, what happens to an in-the-money option at expiry, why margins rise in expiry week, and the STT on exercise.
8 min read
Tax on F&O trading
How F&O income is taxed, turnover, audit and filing.
How F&O trading is taxed in India
Why futures and options profits are business income, how slab rates apply, which expenses you can deduct, and where presumptive taxation, audit and ITR-3 come in.
8 min read
How to calculate F&O turnover for tax
The ICAI method for F&O turnover, why option premium is no longer added separately, and a worked example with six trades.
7 min read
Tax audit for F&O traders: when it applies
The ₹1 crore and ₹10 crore turnover limits, the 6% profit question under the new Income-tax Act, and the audit due dates.
8 min read
ITR-3 for F&O traders: form, accounts and due dates
Why F&O traders usually file ITR-3, what the profit and loss account and balance sheet involve, and the due dates for audit and non-audit cases.
7 min read
F&O losses: set-off and carry forward
How an F&O loss reduces other income, why it cannot touch salary, the eight-year carry forward and the filing deadline that keeps it alive.
7 min read
Advance tax for F&O traders
Who has to pay advance tax, the four instalment dates and percentages, and the interest charged for paying too little or too late.
6 min read