Top 4 Option Strategies For USDINR

Option Strategies for USDINR (updated): Learn how to trade USDINR with currency options NSE. In this tutorial FX options, we will share 4 basic types of currency option trades, along with credit spreads. Trading options is a type of derivatives where you can earn a higher profit with lower risk, depending on your options trading strategy. This is the reason why options derivatives are interesting among traders. In this post, we are going to illustrate mainly how the options structure works.

Example: USDINR Option Current Price: 63.58 as of today.

Long Call / Buy Call:

Under this scenario, if Closing Price / Current price gets above the strike price then you will receive profit.
Let’s say prediction is price will stay above 63. So strike price is 63. When we buy calls you need to pay premiums. Here Loss is limited (maximum the premium) & profit is unlimited. See the picture below, our net premium is only Rs. 687, the money which we need to pay. Then if USDINR goes above 63 til expiry, then we will make better rewards for our risk. One of the best USDINR trading strategy with lower risk.

long call options

Write Call / Selling Call option:

Under this scenario, if Closing Price / Current price gets less than the strike price, then you will receive profit.
Let’s say prediction is price will stay below 63. So strike price is 63. When we sell options you receive the premium. Here loss is unlimited & profit is limited.

write call options

Long Put:

Under this scenario, if Closing Price / Current price gets less than the strike price, then you will receive profit.
Let’s say prediction is price will stay below 63. You will pay the premium. the loss is limited profit is unlimited.

long put options

Write Put / Selling Put option:

Under this scenario, if Closing Price / Current price gets above the strike price then you will receive profit.
Let’s say prediction is price will stay above 66. You will receive the premium for this. The loss is unlimited & profit is limited.

write put options

Current USDINR chart:

option strategies for usdinr

You can calculate Break-even point when you will short options. Which is very risky.
These 4 are the basic options trades & with these 4 you can actually make other options strategies too. Like Credit Spreads, Butterfly, Iron Condor etc. For more, you can read our reading list books from the derivative section.

Note: The profit structure might get changed base the contract expiry date, means how many days it left before expiry, changes the options value.

You can use  Zerodha brokerage calculator to calculate your options trading cost before start trading options derivatives. Trade options with zerodha with industry lowest charges. Only maximum Rs.20 or lower per side. Also, you can carn up to Rs. 6.7 cashback for your trading with us, Minimum Rs.100 payout via paytm, Bank NEFT.
Register Zerodha Open Account Instantly with Aadhar
Sign Up for Zerodha Cashback

Add a Comment

Your email address will not be published. Required fields are marked *

intraquotes trading