Long Call
Buy a call option when you expect the underlying to rise above the strike price before expiry. Maximum loss is limited to the premium paid.
Instrument: Call Option
Access the full depth of India's derivatives markets — index and stock futures, options strategies, and hedging tools — backed by F&O research reports and dedicated relationship managers.
| CALL OI | CALL LTP | STRIKE | PUT LTP | PUT OI |
|---|---|---|---|---|
| High | 142.5 | 24,600 | 18.2 | Low |
| High | 98.3 | 24,700 | 28.6 | Med |
| Med | 58.7 | 24,800 ★ | 52.4 | Med |
| Low | 28.1 | 24,900 | 88.5 | High |
| Low | 12.4 | 25,000 | 138.2 | High |
Understanding F&O
Futures and Options are derivative contracts whose value is derived from an underlying asset — a stock or index. They allow traders to take leveraged positions, hedge existing holdings, and express directional or non-directional market views.
Know Your Instruments
Both are derivatives but they work very differently. Understanding the distinction is essential before you trade either instrument.
| Obligation | Both buyer & seller obligated |
| Premium | No premium — margin required |
| Expiry | Monthly (stock) / Weekly (index) |
| Max Loss | Unlimited (both sides) |
| Common use | Directional trades, hedging |
| Margin | SPAN + Exposure margin required |
Common Approaches
These are widely used F&O strategies. Each carries its own risk profile. Your Nikunj RM can help you understand which approach suits your view and risk appetite.
Why Nikunj for F&O
F&O trading rewards preparation and discipline. Nikunj brings 30+ years of derivatives market experience, research reports, and a dedicated RM to every client's trading journey.
FAQ
Important things to understand before you start trading Futures & Options.
F&O is suited for investors who are comfortable with how derivatives work, including concepts like leverage, margin, expiry cycles, and options pricing. It is a more advanced product compared to equity investing, so having some market knowledge before trading F&O is helpful. Your Nikunj Relationship Manager can guide you on whether F&O fits your current investment profile.
Margin requirements for F&O are set by NSE and SEBI and consist of SPAN margin (risk-based) and Exposure margin. These vary by contract, position size, and volatility. For options buying, the premium paid is the only upfront cost. For futures and options selling, significantly higher margins are required. Your Nikunj RM can provide specific margin details before you trade any contract.
In-the-Money (ITM): A call option where the underlying is above the strike price; a put where it is below. ITM options have intrinsic value.
At-the-Money (ATM): The strike price is close to the current market price. ATM options have the highest time value.
Out-of-the-Money (OTM): A call where the underlying is below the strike; a put where it is above. OTM options have only time value and expire worthless if the underlying does not move in the expected direction.
On NSE, index options (Nifty, Bank Nifty, etc.) have weekly expiries, typically on Thursdays. Stock futures and options expire on the last Thursday of each month. If Thursday is a market holiday, expiry is moved to the previous trading day. Understanding expiry dates is critical as time decay accelerates sharply in the final days before expiry.
Yes — hedging is one of the most prudent uses of F&O. If you hold a portfolio of large-cap stocks, you can buy Nifty or Bank Nifty put options to protect against broad market declines. Similarly, stock-specific put options can hedge individual positions. Effective hedging requires careful sizing and understanding of correlation between your portfolio and the hedge instrument. Your Nikunj RM can help you design an appropriate hedging approach.
Delta measures how much an option's price moves for a ₹1 change in the underlying. Gamma measures the rate of change of Delta. Theta is time decay — how much value an option loses each day. Vega measures sensitivity to changes in implied volatility. Understanding Greeks helps you predict how your option position will behave under different market conditions — and is essential for anyone writing or managing complex multi-leg strategies.
Yes. F&O trading is treated as business income under Indian tax laws, regardless of holding period. Profits are added to your total income and taxed at your applicable slab rate. F&O losses can be carried forward for up to 8 assessment years and set off against future business income. Tax audit requirements may apply if turnover exceeds specified thresholds. We strongly recommend consulting a qualified tax advisor for your specific situation — the above is general information and not tax advice.
Open your F&O-enabled trading account with Nikunj. Get dedicated RM support, daily F&O research reports, and 30+ years of derivatives expertise behind every trade.