There are various factors that influence the price of the call option. Of course, the strike price and the market price are very important factors. Political events that add to uncertainty and volatility in the market may also push up the time value of call options and therefore the price of these options. Similarly, if interest rates are cut then it increases the present value of the strike price and reduces the gap between the strike price and the market price. Thus it will be negative for call options. Volatility impacts the call and put options in a similar manner. For example, if the volatility goes up then the value of calls and puts go up. Same applies to time to expiry. Normally, greater the time to expiry, it results in higher premium pricing for calls and put options. In a nutshell, option trading in India offers a good way to participate in the markets with limited risk. The key is to understand how options get priced and how to effectively use underpriced and overpriced options.