InvestorQ : What is the difference between index calls and stock calls?
Ria Jain made post

What is the difference between index calls and stock calls?

Answer
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Dia Deshpande answered.
2 years ago


The underlying is different. For example, TCS call is a stock call options while Nifty call is an index call option. An index call option is the right to buy an index and the profit/loss will depend on the movement in the index value. Thus you have Nifty Calls, Bank Nifty calls etc. Stock options are options on individual stocks. Thus you have call options on Reliance Industries, Tata Steel, Infosys, and Adani SEZ etc. The principle of trading call options in both cases is the same. You buy call options when you expect the price of the stock or index to go up.