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Option is either in the money ,at the money, out of money.Out of money calls puts have less chance of level getting broken so their price is less.Buyer has to decide of risk and high profit margins or safe and moderate returns.
This is final one in the knowledge series.For understanding option buy and selling one needs to understand what is option chain.Option chain is found on the website nseindia.Its a best thing.
Few thing I would like to tell you is following.I am displaying a chart at bottom have a look at it most things I am gonna explain on chart only.Few things before that.
As seen above see what are the factors you are suppose to see in before entering the options.Of that part you need to focus only on LTP i.e Last traded price.
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