What is CE aka. Call Option?


Posted by: Invos Research
Published on: January 09, 2023
What is CE aka. Call Option?

An option contract known as a CE/call-option gives privledge to the holder the rights, but not complete obligation to purchase a quantity of an underlying asset at a predetermined price also called as "the strike price",  on or before the expiration date. The person or company selling the call option is referred to as the "option writer", and the exercise price/strike price is the pre-determined price at which the underlying asset can be purchased.


On a variety of underlying assets, including stocks, indices, currencies, and commodities, call options are traded. Because the option holder has the right to "call," or purchase, the underlying asset at the strike price, they are referred to as "call" options. Call-options are typically used as a hedge instrument against potential price increases in the underlying asset, to make money by selling options, or to speculate on the price's direction. 

Wow to trade in call options in nifty or banknifty using zerodha?

  1. Open a Zerodha brokerage account: If you don't already have a Zerodha account, you will need to open one by visiting the Zerodha website and following the steps to create an account. You will need to provide personal and financial information and may need to complete additional verification steps.

  2. Fund your account: Once your account is open, you will need to deposit money into it in order to have funds available to trade with. You can do this by transferring money from your bank account or by using a debit or credit card.

  3. Search for the Nifty or Bank Nifty index: Once you have logged into your Zerodha account, you can search for the Nifty or Bank Nifty index using the platform's search function. zerodha nifty call option trading

  4. Select the call options contract you want to trade: Once you have found the Nifty or Bank Nifty index, you can select the call options contract you want to trade. You will need to specify the expiration date, strike price, and number of options you want to purchase.

  5. Place your trade: Once you have selected the options contract you want to trade, you can place your trade by entering the details into the trading platform and submitting your order. Your trade will be executed at the next available price.zerodha nifty call option trading





It is important to note that trading options carries a high level of risk and may not be suitable for all investors. It is important to understand the risks and mechanics of options before trading. Zerodha and other brokerage firms may also have specific requirements and guidelines that you will need to follow when trading options. It is recommended to carefully review these before placing any trades.