Can I Buy Nifty CE and Nifty PE of Same Stricke-Price? (2024)

FAQs

What happens if you buy CE and PE of the same strike price? ›

Straddle Strategy: A neutral options strategy involves buying a put option and a call option with the same strike price and expiration date for the same underlying security. This can be helpful if the investor thinks the stock will go up and down because they can make money no matter how it goes.

If an investor buys both a call and a put for the same strike price on the same expiration date, they've entered into a straddle position. This strategy allows an investor to profit on large price changes, regardless of the direction of the change.

When a stock goes up, CE goes up and PE goes down. So, if a trader is bullish, she can buy CE or can short (sell) PE — in both cases she will make money if the market goes up.

You can buy or sell straddles. In a long straddle, you buy both a call and a put option for the same underlying stock, with the same strike price and expiration date. If the underlying stock moves a lot in either direction before the expiration date, you can make a profit.

Profit On Any Price Change With Long Straddles

yes. this strategy is called Straddle. you earn profit if there is a big move in the market in either direction. Yes, you can, BUY both CE and PE of same Strike Price.

Yes, it is possible to buy both call options (CE) and put options (PE) in the stock market. A call option lends the buyer the right, but not the obligation, to purchase a stock at a specific price (strike price), while a put option lends the buyer the right, but not the obligation, to sell a stock at a specific price.

DEFINITION: A straddle is a trading strategy that involves options. To use a straddle, a trader buys/sells a Call option and a Put option simultaneously for the same underlying asset at a certain point of time provided both options have the same expiry date and same strike price.

Selling call options on a stock that is not owned is the riskiest option strategy. This is also known as writing a naked call and selling an uncovered call.

Short straddles involve selling a call and put with the same strike price. For example, sell a 100 Call and sell a 100 Put. Short strangles, however, involve selling a call with a higher strike price and selling a put with a lower strike price. For example, sell a 105 Call and sell a 95 Put.

When we think if the stock likely to go down due to some bad performance or news in coming 1 or 2 weeks, say -3% or more, then we can BUY the Put Option ( PE ). Logic here is , as the stock goes down, the PE value goes up. Same like CE, if the value fall is mild, it may not go up due to time erosion.

Should I buy CE or PE? ›

There are two types of options: 1. Call options 2. Put options Call options (also called CE) give you the right (not obligation) to buy an option contract. Put options (also called PE) give you the right (not obligation) to sell an option contract.

Buying a CE (Call Option European Style) means acquiring the right to buy the underlying asset at a specified price within a specific time frame. Selling a PE (Put Option European Style) refers to the act of granting someone else the right to sell the underlying asset at a specified price within a specific time frame.

1. Bull Call Spread. A bull call spread strategy is driven by a bullish outlook. It involves purchasing a call option with a lower strike price while concurrently selling one with a higher strike price, positioning you to profit from an anticipated gradual increase in the stock's value.

A butterfly spread is the sale of two options at one strike and the purchase of both a higher- and lower-strike option of the same type (i.e., calls or puts). And if you understand how the iron condor works, then you'll see that buying a butterfly is similar in principle to selling an iron condor.

There are no restrictions on placing multiple buy orders to buy the same stock more than once in a day, and you can place multiple sell orders to sell the same stock in a single day.

Put options Call options (also called CE) give you the right (not obligation) to buy an option contract. Put options (also called PE) give you the right (not obligation) to sell an option contract.