A STUDY ON OPTION TRADERS PERCEPTION OF OPTION TRADING STRATEGIES

The National stock exchange Limited (NSE) commenced trading in derivatives in 2000. The future contracts were based on Nifty 50 index. It was also the first exchange in India to introduce trading in options on individual securities from July2, 2001. With the technology pushing trading to online platform, it became easier for individuals to trade in options. It became an opportunity even for small investors to make profits or earn a passive income without huge investments. However, even now options are considered highly risky and many option traders have incurred irreparable losses, however it appears this is because of their lack of understanding on option trading strategies. With a view to find out how after about 2 decades of the introduction of this derivative in NSE, how traders perceive the some of the popular strategies to improve their performance and reduce their losses.