amc

₹0*

Account Opening

No opening charges for Demat & Trading account.

equity brokerage

₹10*

For F&O

Trade without any worries

options brokerage

₹0*

AMC

Free maintenance for 365 days** of account activation.

What is Options trading?

what is ipo

Options trading refers to an option contract that gives the buyer the right to buy or sell a company's stock at a predetermined price and at a predetermined date in the future. In options contracts, unlike future contracts, it is not required to buy or sell the underlying asset.

Share India is your one-stop shop for everything you need to know about trading options. With our flat fee, you can get everything you need in terms of technology and price all in one place. Check out our advanced charts and cutting-edge technology.

Benefits of Options Trading with Share India

Acc Opening

Quick Trading

Completely Paperless account opening process. Onboard from the Share India website or online stock trading app. Trade in a hassle-free environment.

Acc Maintenance

Multiple Opportunities

Explore & trade in multiple assets. Manage & all access to all assets under one roof. Track each investment daily.

Equity Brokerage

Informative Updates

Trade with quality insight & news. Get the market update and increase your knowledge of the share market. Learn trade from a professional broker.

Options Brokerage

Secure Trading

Now trade without any worries. Explore our platform that comes with encryption & essential security features

Explore Our Simple Brokerage Charges

We help you to get value for money financial service. With Share India, you can invest with unbeatable trading charges.

₹0* On Equity Delivery

No Hidden charges

₹0* Account Opening

No opening charges for Demat & Trading account.

₹10* For F&O

Trade without any worries

₹10* Intraday Trading

Per executed order or 0.03% turnover, whichever is lower.

₹0* AMC

Free maintenance for 365day** of account activation.

Open your F&O Account Online

Step 1

Register

Go to the Share India site, Click on Open Demat account, and then enter your email & phone number.

Step 2

Verify

After entering your personal details & income proof, complete the KYC verification.

Step 3

Upload

Scan & upload your Aadhaar Card & PAN Card.

Step 4

E-sign & Confirmation

E-Sign Aadhaar through OTP and add nominee details.

Our Exclusive Product & Services

We are a 28 years young group trying to modify the investing habits of young millennials in India attracted to investing. Share India believes in growing with you by giving you the best help to reach your trading and financial goals.

Our unique business model is based on quality and scalability, and it is driven by technology.

Mutual Fund Icon
Trade in Stocks

Trade confidently with a digital-first approach and insights to make the most of equity markets.

Read More
Mutual Fund Icon
Invest in IPOs

Don't miss out on the chance to invest in IPOs.

Read More
Mutual Fund Icon
Intraday Trading

Utilise your choice of intraday strategies.

Read More
Mutual Fund Icon
Derivatives

Diversify your financial portfolio with F&O.

Read More

Online Trading Tools & Platforms

Start your trading and investing journey with just a few clicks

Start your trading and investing journey with just a few clicks

Share India offers a robust platform with a hassle-free trading experience. Our goal is to be a company that is of the traders, by the traders, for the traders.

analysis
Credibility
Offers trusted and transparent software.
Online Desktop
Smart interface
The trading platform is a one-stop trading solution.
sell
Specialised offering
Share India aims to provide the first of its kind algorithmic trading product to every Indian household.
analysis
Option Calculator
Plan your option trade and stay one step ahead in the stock market.
Know More
analysis

Article on Options Trading

Lorem ipsume is simple dummy text

Blog Image

19

May/22

What is Free Float Market Capitalization?

There are multiple ways to measure the size of a company. Market capitalization is an important parameter which many investors consider while putting money…

Blog Image

18

May/22

Understanding Open Interest and It’s Importance in Trading!

While trading in the futures and options market, many of you must have come across the fact that traders face losses as they dont...

Blog Image

25

Apr/22

Initial Public Offerings (IPO) vs Follow On Public Offer…

When a company needs money for expanding their business capacity or clearing off their debt then they go public. Both IPO and FPO are…

Frequently Asked Questions on Options Trading

There are four levels of option trading, which traders make use of based on the resources needed and the experience they have. The four levels are :
  • Covered Calls & Cash-Secured Puts

  • Long Options

  • Option Spreads

  • Naked Calls & Puts

These levels are in place to help traders and brokers alike. Brokers enable traders to move up the levels based on their experience and the trades they carry out regularly, and the returns generated from them.

The number of times you trade in options is completely based on your strategy. There is no limitation as of such apart from the fact that you can not carry out trade in the same stock more than four times in a span of five days. Create a strategy accordingly, and be sure to not trade in just a single share.

Yes, you can hold on to the option contract till its expiry. The contract gives you the right but not the obligation to buy or sell the underlying asset at a specific strike price. The right can be used from the time you purchase the option till the time of expiry. Once the contract expires, it is worthless. If you wish to exercise the option contract, you must do so before it expires.

You must adopt a trading strategy personalized to your own goals and investing temperament. You can choose to sell an option contract if it fits your strategy and you are confident enough of getting some gains by doing. If you already own an option contract, you can sell it in case you don’t plan of exercising it. There can be two reasons why selling the option contract might be better. One case would be the option could be an out of the money option, but by exercising it, you might be able to make a profit after deducting the premium you made. Another reason could be for an in-the-money option contract, but selling the contract might lead to higher profits. Based on your strategy and situation, you can sell options.

There are many option trading strategies that you can use. There is no one strategy that is ever perfect. You could even do your research to create a strategy of your own. A personalized strategy can help you better than a standard strategy that is widely used. The reason for this is that there are many factors that affect you alone, which aren’t factored in during the creation of the strategy. Your financial goals, risk taking capabilities, initial investment capital, use of margin, etc, influence the strategy you can use. The amalgamation of strategies can be used. Keeping in mind that a random combination might not work, and you must test your strategy before using it. Research, as well as rigorous testing and adapting based on the flaws you encounter, will help you create the strategy that works best for you.

Profits gained from options trading come under the business income. Business income is taxed based on your income slab. Hence, whatever profits you generate will be taxed and based on your total income. For an example, say you have an annual income of 2 lakhs, and you generate 2 lakhs via options trading. Together your income will be 4 lakhs, and you will be based on the total 4 lakhs of income you have gained. It’s better to be aware of when to have profits to avoid any issues.

There is a penalty for margin violation which charges around 0.07% per day. If you don't maintain your margin for option trading, then the margin penalty can harm you with a huge loss.

To make your position in the options trade, you need to maintain a margin. The margin money is measured in the % of the total value of the option contract. As an option buyer, you can limit the loss or unlimited profit which requires a premium amount to pay for understanding the upside or the downside of the option contract.

Time value is described as the amount an investor is ready to pay for the option above its intrinsic value. This value indicates a chance of the option’s value to rise before its expiry and due to a positive change in the underlying assets price.

The term squaring off in options trade refers to executing an option contract with the same strike price, lot size and expiry date, then you are squaring off your position. For an exercise trade-on option, you will take the delivery of the underlying assets such as stock, commodities etc.

The strike price refers to the rate at which a trader enters the options contract. There are various strike prices available in the market. The strike price can be available at a lower price than the spot price or higher than the spot price of underlying assets.

If you have the necessary funds, you can buy and sell the option as per your need. Waiting for the call option to hit the strike price to sell the option contract is unnecessary.

The lot size in an options contract refers to a fixed number of units of the underlying asset, such as stocks. The standard lot size is different for each stock, and the stock exchange decides it.

The option premium is the price the buyer pays above the spot price to acquire the option contract. It is a significant cost that an option buyer/seller pays to acquire the right to buy or sell the underlying assets.

A put option contract is the opposite of a call option which lets the buyer of the contract right to sell the underlying asset at a pre-determined price & date.

The call options contract gives the buyer the right to buy the underlying asset of the options contract at a predetermined price and date. To get the right to buy these underlying assets, the buyer needs to pay a premium to the seller of the call option contract.