Today we will learn how to implement a very good strategy for Option Chain Trading with real-time data. For real-time data we will use Paytm Money Python API. Follow the blog carefully to understand the concept to learn how this strategy works.
What is Option?
An ‘option’ is a contract that permits (but does not force) an investor to purchase or trade instruments like securities, ETFs or index funds at a pre-decided rate after a specified period (expiry date). Selling and purchasing options are carried out in the options market. An option that permits you to acquire shares sometime in the future is known as a call option. On the other hand, an option that enables you to sell shares sometime in the future is known as a put option. And strike price is the pre-determined price at which the buyer and seller of an option agree on a contract or exercise a valid and unexpired option.
How does an Option Trading Work?
When an investor buys or sells an option, they have the right to apply that option at any point before the date of expiration. Simply purchasing or selling an option doesn’t require one to actually exercise it at the expiration point or expiry date. This is why, options are considered ‘derivative securities’. In other words, the price of option is derived from the value of actual assets, securities, and other underlying instruments.
Python Source Code
Conclusion
Finally if you have reached the end of this post (Earn Money with Option Chain Trading Strategy (Paytm Money Python API)), as result you should be now able to use the python bot for virtual trading. Now you can see how this simple strategy can earn good money within short time if used a the right time. If you want to learn more about trading, then stay tune to tutlogic.com or follow my channel on youtube.com/@tutlogic.
