Question 1

What is options trading in India?

Accepted Answer

Options trading in India allows you to buy or sell the right to purchase stocks or indices at a predetermined price. Options are traded on NSE for Nifty, Bank Nifty, and F&O stocks.

Question 2

What is Max Pain in options?

Accepted Answer

Max Pain is the strike price at which option buyers would lose the most money at expiry. It helps predict where the index or stock might settle on expiry day.

Question 3

What is PCR (Put-Call Ratio)?

Accepted Answer

Put-Call Ratio (PCR) measures the ratio of put options to call options. A high PCR suggests bearish sentiment, while a low PCR indicates bullish sentiment.

Question 4

What is open interest in F&O?

Accepted Answer

Open interest is the total number of outstanding derivative contracts that have not been settled. Rising OI with rising prices indicates bullish trend.