Summary
Full Transcript
As we've learned from the previous videos, if you have a bullish view on a stock, you can buy a call or sell a put. But naked options trades can be risky if your view is wrong. One of the better ways to express a bullish view is by using multi-leg strategies, which involve buying and selling multiple options simultaneously, Let's take the same example. Let's say you're bullish on TCS. Instead of just selling a put and exposing yourself to directional risk, you can reduce the risk by sacrificing some upside but also capping the downside in case TCS falls. One such strategy is called a Bull Call Spread, where you buy an in the money (ITM) option and sell an out of the money option (OTM). In this video, we discuss how the bull call spread works. To learn more about the bull call spread, check out this chapter: https://zerodha.com/varsity/chapter/bull-call-spread/ Also, check out this video on buying a call vs selling a put: https://youtu.be/0CnHdzTE66s)
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