How to do Options Trading in Zerodha? – A Complete Guide

Today I was thinking to introduce another variant of trading which is Options Trading. This is quite popular among traders especially. But still, if you want to test your luck with this type of trading then this article is for you! In today’s article, we will discuss in brief What is Options Trading and How to do Options Trading in Zerodha? Let’s begin then.

What are Options Trading in Zerodha?

Read What are Options in Stocks? – Types of Options Trading based on Underlying Asset & Time Frame

In case someone is interested in the most popular form of options trading which is put and call options. Then here is the link for the article: What is Call and Put in Stock Market with Example?

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How to do Options Trading in Zerodha?

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Time needed: 2 minutes.

Now that we have understood the concept of options trading. Let’s check the steps involved in carrying out Options Trading on Zerodha:

  1. Login to Zerodha with your Username, Password, and Pin

    You can visit Zerodha Login Page either by googling or via clicking on this link: https://kite.zerodha.com. After that you can enter your Username, Password followed by Pin verification.

    How to Invest in NIFTY 50 Zerodha

  2. Decide the Option Strategy basis of your analysis. Followed with the search for the respective PE/CE option in the search bar Tab and Select the strike price:

    Once you have analyzed the market whether there will be an upside or downside. Accordingly, you need to define the strike price firstly in your mind followed by App. In case the market goes down then choose the PE option or else CE. Search for the stick price and select on the basis of the duration like month/weekend the option strike that you want to purchase.

  3. Click on the Buy Option

    Once you select on strike price option, in case you have a put option for weekly then the premium will be too less as compared to the monthly put option. In case you’re an expert trader then you can play easily when the market is going down by clicking on Buy Option.

  4. Fill in the required details

    You can enter a quantity in the multiples of the lot size followed by a price. On Product, you will get two options Intraday Mis or Overnight. In Intraday you have to sell it on the same trading or else it will square off automatically by the EOD. Whereas, Overnight you can hold until you want till its expiry. You need to select the type of order likewise: Market, limit, stop loss or stop loss limit. After that, you can click on swipe to buy. Once clicked, an order will be placed.

Conclusion

Options allow traders to trade in market fluctuations using predetermined prices and time frames. It offers ample opportunities of making money, however, it is extremely risky. Only trade options if you are well-versed in all market nuances.

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