Call Option helps a buyer to buy a particular asset at particular price at a particular future date. This helps investors/ traders to avoid the risk of rising prices in future.
Suppose you want to buy Nifty today but today you do not have money. You major wory is in future the prices can go up at any level & you will buy costlier NIfty. To avoid all this you buy a call option to avoid risk of rising price.
Is buying call option sufficient? No selecting right call option is very important that is why you need to learn what is In the money Call Option vs Out of Money call Option Vs At the money Call option.
In This video, I ll make you understant all these concepts as well as how to decode option chain