How to Create Zero-Risk Strategies in F&O

Options trading in the futures and options (F&O) market can feel like a rollercoaster—exciting but full of risks. What if you could smooth out the ride and minimise those risks? That’s where zero-risk strategies come in. While no strategy is completely risk-free in the real world, specific approaches can significantly reduce your exposure. In this article, we’ll explore what these strategies are, walk through a practical example, and discuss how to put them into action.

Understanding Zero-Risk Strategies

Zero-risk strategies aim to limit losses while still giving you a shot at profits. They often involve combining call options (the right to buy an asset) and put options (the right to sell an asset) in ways that offset potential downsides. For example, a covered call involves owning a stock and selling a call option against it. If the stock price rises, you might cap your gains, but the option premium you collect cushions the blow. If it falls, you still have the stock, though its value drops.

You can also execute the strategy by selling protective puts. At this point, you acquire a put option for a stock you own. Should the price fall, you may choose to exercise the put and get out at the strike price, preventing your loss from growing. While these approaches aren’t always reliable, they do help traders become more secure when trading options.

Read full article here: https://bigul.co/blog/option-trading/how-to-create-zero-risk-strategies-in-future-and-options

How to Make a Profit Using Bullish Option Trading Strategies?

What is Option Trading?

If you are a beginner and trading in the stock market, you often wonder what option trading is. It’s basically a way to profit from the movement of stock price or Index price by buying or selling contracts at a set price. For example, an options trading for beginners scenario might be buying a call option on Reliance Industries at Rs. 1,400 if you believe its price will rise. If Reliance climbs to Rs. 1,500 before expiry, that call option becomes valuable and you make a profit. This strategy lets you gain from upward price moves with limited risk (the most you lose is the premium paid).

A Few Things You Need To Know Before Diving Into Options

Calls vs. Puts: It is good to know the basics before proceeding with the strategy. In option puts and calls, you would have a call option to purchase a stock at a set price (in case you think the stock will increase), and a put option to sell a stock at a set price (in case you think the stock will decrease). When the terms put option and call options are used, consider calls as the bullish side and puts as the bearish side.

Some traders even use a call and a put together, which they sometimes call an options call put strategy (like a straddle); but for now, we'll focus on straightforward bullish strategies.

When markets are rising, traders use bullish option trading strategies to capitalize on gains. These strategies let you potentially earn money when stocks like Infosys or TCS climb higher. We will look at five common strategies: buying a call (Long Call), Bull Call Spread, Covered Call, Cash-Secured Put, and Protective Put. 

Each one uses calls and puts in different ways to aim for profit. We’ll use real examples with Indian stocks and rupees to illustrate how each option trading strategy works.

Bullish Strategies For The Indian Market

Long Call: This is the simplest bullish strategy. You pay a premium to buy a call option, which gives you the right to buy shares at a strike price. For example, if Reliance is trading at Rs. 1,400, you could buy a Rs. 1,500 strike call option for, say, Rs. 50. This costs you Rs. 50 per share (the premium). If Reliance moves up to Rs. 1,600 by expiry, your call option (which lets you buy at 1,500) is worth at least Rs. 100, so you make a net profit of Rs. 50 per share. The most you risk is the premium paid, and option trading for beginners love this strategy for its simplicity and unlimited upside.

Bull Call Spread: This strategy uses two call options to reduce cost. You buy a call at a lower strike and sell another call at a higher strike. For instance, imagine Infosys is at Rs. 1,400. You buy a Rs. 1,400 call for Rs. 100 and sell a Rs. 1,500 call for Rs. 50. Net, you pay Rs. 50 in premium. If Infosys rises to Rs. 1,500 by expiry, the 1,400 call is worth Rs. 100 and the 1,500 call expires worthless, giving you Rs. 50 profit (Rs. 100 value minus Rs. 50 cost). This caps both your profit and loss but is a popular option trading strategy to boost gains when the stock rises moderately.

Covered Call: If you have shares of a company, then you can sell a call on the stock to earn.For example, you hold 100 shares of TCS at Rs. 3,000. You sell a Rs. 3,200 strike call and collect about Rs. 60 per share in premium (Rs. 6,000 total). If TCS stays below Rs. 3,200 by expiry, you keep the premium and still own your shares. If TCS rises above Rs. 3,200, you must sell your shares at that price, but you still keep the premium. This option trading strategy gives you income in a rising market, though it limits extra gains beyond the strike.

Cash-Secured Put: This strategy is selling a put option on stock while having enough cash to buy the stocks later. For example, if Infosys trades at Rs. 1,400 and you believe it won’t drop below Rs. 1,300, you could sell the Rs. 1,300 put option for Rs. 40 premium. If Infosys stays above Rs. 1,300 by expiry, you keep the Rs. 40 per share premium as profit. If Infosys falls to Rs. 1,200, you must buy 100 shares at Rs. 1,300 (using your cash), but your effective cost is Rs. 1,260 (Rs. 1,300 strike minus Rs. 40 premium).

Protective Put: If you have a stock and you think it will drop then you should buy a Put for the insurance.For example, say you own 100 shares of Reliance at Rs. 1,400. You buy a Rs. 1,300 put for Rs. 30. If Reliance stays above Rs. 1,300, you lose the Rs. 30 premium but still profit from any higher stock price. If Reliance crashes to Rs. 1,200, you can sell at Rs. 1,300 using the put, capping your loss. Protective puts cost a premium but give peace of mind, letting you stay bullish in trading in stock market with limited downside.

Read more here: https://bigul.co/blog/option-trading/how-to-make-a-profit-using-bullish-option-trading-strategies

Option Trading for Working Professionals: 5 Smart Strategies (2025)

Top 5 Option Trading Strategies for Employed Individuals

1. Cash-Secured Puts (Buy Stocks on Your Terms)

Best for: Building a portfolio gradually

• Sell puts on stocks you want to own at your desired price.

• Earn premium income whether you get assigned or not.

• If assigned, you buy at a discount.

Why It Works: Time-efficient, conservative, and aligned with long-term investing.

2. Covered Calls (Earn More from Stocks You Own)

Best for: Generating income from existing holdings

• Sell a call option on stocks you already own.

• Keep the premium if the stock doesn’t hit the strike.

• If assigned, sell at a profit plus the premium.

Why It Works: Low-maintenance and profitable in sideways markets.

3. Buying LEAPS (Long-Term Options with Conviction)

Best for: Long-term believers in a stock

• Buy call/put options with 1-3 year expiry.

• Less time decay and more room for your thesis to play out.

Why It Works: Cheaper than buying shares, and ideal for those who can't monitor markets daily.

4. Iron Condors & Spreads (Sideways Profit Machines)

Best for: Earning income in low-volatility conditions

• Use defined-risk strategies like credit spreads.

• Collect premium while keeping downside risk in check.

Why It Works: Minimal monitoring, defined losses, and works well when markets move less.

5. Protective Puts (Insure Your Portfolio)

Best for: Hedging during earnings or volatility

• Buy puts to protect against major drops.

• You only lose the premium if the market stays up.

Why It Works: Peace of mind and risk control without selling your core holdings.

Read Full Article Here: Bigul

Which app is best for trading? Best Trading Apps in India 2024

In the fast-paced world of stock trading, having the right tools at your fingertips can make all the difference. As we step into 2024, the landscape of trading apps in India has evolved, with a multitude of options available to cater to different trading styles and preferences. In this blog, we’ll explore some of the best trading apps in India for 2024, highlighting their key features, pros, and cons to help you make an informed decision.

1. Zerodha Kite

Overview

Zerodha Kite remains one of the most popular trading apps in India, renowned for its user-friendly interface and powerful features. Zerodha, a pioneer in discount broking, continues to innovate and provide exceptional services to its users.

Key Features

User-Friendly Interface: Clean and intuitive design that makes trading seamless.

Advanced Charting: Offers a wide range of charting tools and indicators.

Integration with Coin: Access to direct mutual funds and SIP investments.

Low Brokerage Fees: Flat Rs. 20 per trade irrespective of the trade size.

Pros

Low brokerage fees.

Robust charting tools.

Reliable and fast order execution.

Cons

Limited customer support options.

Occasional technical glitches during peak trading hours.

2. Upstox Pro

Overview

Upstox Pro has gained significant traction among traders due to its competitive pricing and feature-rich platform. Backed by prominent investors like Ratan Tata, Upstox is known for its innovation and customer-centric approach.

Key Features

Customizable Dashboard: Tailor your trading experience with a customizable dashboard.

Advanced Order Types: Includes bracket orders and cover orders for better risk management.

Extensive Research and Insights: Access to market research, news, and analysis.

Seamless Fund Transfer: Easy fund transfer with integration to multiple banks.

Pros

Competitive brokerage fees.

Feature-rich trading platform.

Excellent research and insights.

Cons

Limited customer support.

Occasional lag during high volatility periods.

3. Angel Broking

Overview

Angel Broking, a veteran in the Indian brokerage industry, offers a comprehensive trading app that caters to both beginners and seasoned traders. With a strong focus on technology and customer satisfaction, Angel Broking has carved a niche for itself.

Key Features

ARQ Advisory: AI-powered advisory tool for personalized investment recommendations.

SmartAPI: Allows developers to build their trading strategies.

Portfolio Health Check: Regular analysis and suggestions to optimize your portfolio.

Real-time Notifications: Stay updated with instant trade alerts and notifications.

Pros

AI-powered advisory.

Comprehensive portfolio management tools.

Strong customer support.

Cons

Higher brokerage compared to discount brokers.

Interface can be overwhelming for beginners.

4. Groww

Overview

Originally a mutual fund investment platform, Groww has expanded its offerings to include stock trading. It is particularly popular among young investors and beginners due to its simple and straightforward interface.

Key Features

Easy Account Opening: Hassle-free account opening process.

Simple Interface: Clean and minimalistic design, ideal for beginners.

Direct Mutual Fund Investments: No commission on mutual fund investments.

Educational Content: Rich repository of blogs and tutorials for new investors.

Pros

User-friendly interface.

No commission on mutual funds.

Extensive educational resources.

Cons

Limited advanced trading features.

Basic charting tools.

5. 5paisa

Overview

5paisa is another popular discount broker that offers a range of services including stock trading, mutual funds, insurance, and loans. It is known for its low-cost brokerage plans and robust trading platform.

Key Features

Auto Investor: AI-driven investment recommendations.

Smallcase Integration: Invest in themed portfolios.

Margin Funding: Leverage your trades with margin funding.

Multi-Segment Trading: Trade across stocks, derivatives, commodities, and currencies.

Pros

Competitive pricing.

Diverse range of services.

Robust trading platform.

Cons

Average customer support.

App interface can be improved.

Conclusion

Choosing the best trading app depends on your individual trading needs and preferences. Zerodha Kite and Upstox Pro are excellent choices for their low brokerage fees and feature-rich platforms. Angel Broking stands out with its AI-powered advisory, while Groww is perfect for beginners looking for a simple and easy-to-use interface. 5paisa offers a comprehensive range of services at competitive prices. Evaluate your requirements, compare the features, and choose the app that aligns best with your trading style. Happy trading in 2024!

Rs 1400 Crore Pulled from Quant Mutual Fund in a Record 3-Day Period

Attention investors! Over the last three days, Quant Mutual Fund has redeemed a staggering Rs 1400 crore. The cause? Growing concerns over SEBI's investigation into a front-running case. This has understandably caused a wave of worry and uncertainty among investors about whether to stay invested or to pull out.

Market experts, however, suggest that these redemptions, while significant, are part of normal market dynamics and driven by personal investor circumstances. They stress the importance of not making hasty decisions based on fear or incomplete information.

Tips for Investors:

Get the Facts: Stay updated on the SEBI investigation and understand its implications for your investments.

Evaluate Your Strategy: Reassess your investment strategy based on your financial goals and risk tolerance.

Hold Steady: Experts recommend holding on to your existing investments and not adding new money until the market stabilizes.

Remember, the key to successful investing is staying informed and making decisions based on a well-rounded understanding of the market landscape.

Read more...

Taxation for Traders and Investors

Taxation similarly applies to investments and may influence your choice of instruments. For instance, the period for which you held your investment is a good indicator of taxes applicable and the manner of handling taxes normally.

Due to the same reason, the rate of taxation applicable to an investor holding securities for a long period might not be equally applicable to his friend who occasionally engages in intra-day trading. 

Read more…https://bigul.co/blog/taxation-for-traders-and-investors/