Queries ,confusions and doubts about option trading

[darshank]

@mohitkocharsbi

Ok buddy.

So U need to pay premium in case u buy call option.

But If u buy a put option then u need to pay premium or margin.

Anybody here?

Whether you buy CALL option or PUT option, premium is paid in case of BUY

[hardik]

@mohitkocharsbi

so this means that in last two weeks, buy put option and later sell it.

like we use this logic in equity share when share price is decreasing then we sell it first and buy it later

No,
Both put and call premium option price decrease over the period of time.
You should check Time decay and Option Greeks(Delta, Gamma, Theta, Vegas)

[mohitkocharsbi]

Thanks Hardik and Darshan for giving me these information.

[Prashi]

Watch below video to fully understand three elements that make up option prices.

• Options Trading: Understanding Option Prices

• Call Options & Put Options Explained Simply In 8 Minutes

I hope this help.