NISM Certified Educator · Stock Pathshala

Equity Derivatives Trading & Planning

A comprehensive 8-class practical course on futures, options, Greeks, volatility strategies,
hedging and professional risk management — taught in Bengali & Hindi.

8
Classes
Intermediate
to Advanced
Bengali
& Hindi
Live
Online
Enroll Now

"The derivatives market is not a casino — it's a precision instrument. Master it and it protects you; misuse it and it destroys you."

— Sagar Chowdhury, Stock Pathshala
Forwards
Customized private agreements between two parties to buy or sell an asset at an agreed price on a future date.
Generally over-the-counter (OTC) contracts — not traded on exchanges.
Futures
Standardized exchange-traded contracts to buy or sell an asset at a predetermined price and future date.
Require margins and daily mark-to-market settlement, reducing counterparty risk.
Options
Give buyers the right, but not obligation, to buy or sell an underlying asset at a specified price before expiry.
Buyers pay premiums; sellers assume obligations.
Swaps
Agreements where two parties exchange specified cash flows according to predetermined terms.
Common examples: interest-rate and currency swaps — mainly used for managing financial risks.
Market Participants & Uses — hedgers, speculators, arbitrageurs and their role in derivatives markets.
How to Use Capital in Derivatives Market — capital allocation principles and margin efficiency.
How Collateral Works in Derivatives — pledging shares, cash margins, SPAN and exposure margin explained.
Option Chain
A structured matrix layout displaying all available options strike prices, premiums, volume, and expiration dates for an underlying asset.
OI (Open Interest)
The total number of active derivative contracts that are currently open and have not been settled or closed.
IV (Implied Volatility)
The market's forward-looking estimate of price variability, directly driving the pricing of option premiums and risk premiums.
Volatility Strategies
Trading frameworks like straddles or iron condors designed to profit strictly from changes in asset price fluctuations, regardless of direction.
Adjustments
Defensive actions like rolling strikes or adding legs taken to manage risk and repair a losing options position.
Hedging
Executing offsetting derivatives trades to shield a portfolio or position from catastrophic losses caused by adverse market moves.
Call & Put Options — detailed explanation of buyer and seller perspectives, rights vs obligations, and payoff profiles.
Strike Price
The predetermined fixed price at which an option holder can buy or sell the underlying asset upon contract exercise.
Expiry
The exact final date and time when an options contract becomes void, invalid, and ceases to trade or exist.
Premium
The upfront cash price paid by the buyer to the seller to purchase the rights of an options contract.
Detailed Explanation of All Counterparts — how each element interacts in a live trade, with practical examples.
Intrinsic Value & Time Value
Intrinsic value is an option's inherent worth if exercised immediately; time value is the premium reflecting remaining lifespan potential.
ITM / ATM / OTM
In-the-money options hold intrinsic value; at-the-money strikes equal the asset price; out-of-the-money options contain only time value.
IV (Implied Volatility)
A metric reflecting the market's forecast of future price fluctuations derived from current option prices and market demand.
Volatility
A statistical measure tracking the frequency and magnitude of price movements for a specific asset over time.
1. Delta
Measures the expected change in an option's price for every one-dollar move in the underlying asset's price.
2. Gamma
Tracks the rate of change in Delta for each one-dollar movement in the underlying asset's price.
3. Theta
Represents the daily rate of time decay, showing how much value an option loses as expiration approaches.
4. Vega
Quantifies an option price's sensitivity to a one-percentage-point change in the underlying asset's implied volatility.
5. Rho
Measures the expected change in an option's value for every one-percentage-point shift in the risk-free interest rate.
Practical Interpretation — how to read and act on Greeks in live market conditions using option chain data.
Contract
A legal agreement between two or more parties that defines the terms for trading an asset or financial instrument.
Margin
The amount of money a trader deposits with a broker as collateral to open and maintain a leveraged position.
MTM (Mark-to-Market)
The daily process of measuring the fair value of an asset or portfolio based on current market prices.
Leverage
Using borrowed money from a broker to increase the size of a trade and potential returns or losses.
Payoff
The potential financial profit or loss outcome of an investment or derivative contract at expiration or settlement.
Hedging
A risk management strategy where you take an offsetting position to reduce potential losses in another investment.
Basic Strategies
Long Call / Long Put — pure directional bets with defined risk.
Covered Call — generate income on existing stock holdings.
Protective Put — insurance strategy against downside in a long position.
Collar — combining a protective put and covered call to cap both risk and reward.
Directional Spreads
Bull Call Spread / Bull Put Spread — low-cost strategies for moderate bullish views.
Bear Call Spread / Bear Put Spread — defined-risk strategies for bearish market outlook.
Non-Directional Strategies
Straddle — buy both call and put at the same strike to profit from big moves in either direction.
Strangle — similar to straddle but uses OTM options for lower cost.
Iron Condor — sell an OTM strangle and buy a wider one; profits in range-bound markets.
Butterfly — three-strike strategy targeting a specific price at expiry.
Condor — four-strike spread for a wider profit range than butterfly.
Strategy Selection
The process of choosing a trading methodology based on market conditions, asset behavior, capital availability, and personal risk tolerance.
Position Sizing
Calculating the precise amount of capital or number of contracts allocated to a trade to limit potential loss.
Risk Management
Rules and actions used to protect capital, including stop-losses, diversification, and maximum drawdown limits across a portfolio.
Backtesting
Testing a trading strategy on historical market data to evaluate its viability, profitability, and risk profile before risking capital.

 Platforms & Tools Covered

All platforms taught hands-on during the course

NSE India TradingView Opstra Sensibull Moneycontrol ChartInk Screener.in
AI Websites

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