Question 1

Is CE superior to PE?

Accepted Answer

Option trading terminologies include PE-Put Option and CE-Call Option. CE stands for "Right to Buy" and PE stands for "Right to Sell" theoretically. You should purchase CE while the market is rising. When the market declines, you ought to purchase PE.

Question 2

Should I ever sell my CE option?

Accepted Answer

When you believe that the stock's potential upside is constrained, you sell a call option. As long as the stock does not rise above the strike price, you don't care if it stays flat or declines.

Question 3

Can I purchase both put and call options?

Accepted Answer

Straddles can be purchased or sold. In a long straddle, you purchase both a call and a put option with the same strike price and expiration date for the same underlying stock.

Question 4

Can I purchase puts today and sell them tomorrow?

Accepted Answer

On a handful of regulated exchanges, options can be bought and sold through a broker during regular market hours. If the day is seen as a typical business trading day, an investor may decide to buy an option and sell it the next day.

Question 5

Which trading platform is best for options?

Accepted Answer

There are various stock trading platforms available for option trading, but we advise using Zerodha because it is quick and easy to use.

What is CE and PE in Share Market?

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