option trading: ETMarkets Trade Talk: How IIT, IIM grad from Jaipur made Rs 25 crore from option trading

The others in his bucket are Escorts Ltd., Crisil Ltd, SAIL, Fortis Healthcare Ltd., several other leading stocks. You would be shocked to know it is Mr. Damani who guided Rakesh Jhunjhunwala, the real king of the Indian stock market. Being the wealthiest trader in India, he has a portfolio worth Rs. 202,200 crores at present. All these reputed stock traders have earned tremendous reputation in the stock investment landscape and become the patrons of many who want to make it big with their investment in stocks. We suggest TradeStation if you want great research, leading technology, but don’t mind high trading fees.

Kindly note that, this article does not constitute an offer or solicitation for the purchase or sale of any financial instrument. Listed below are the top 10 stocks for options trading in India. Warren Buffett has long shown his ability to read Wall Street like a book.

There, he stumbled upon a video regarding the stock market, which kickstarted his journey to become a successful options trader. Larsen and Toubro Limited (L&T) is a renowned engineering and construction conglomerate with diversified business interests. With its expertise in sectors like infrastructure, power, and defense, L&T offers options traders exposure to India’s infrastructure development and capital expenditure activities. In terms of diversification, it can be easily seen that Premji doesn’t love to feature an extensively diversified portfolio like other stock traders. He mainly invests in technology stocks but he still enjoys the top worth at present in the industry. Once you’re past that, they do enable you to follow leading or popular options traders.

Indian Oil Corporation share price

Instead of losing hope and giving up on the market, Amit turned to Subasush Pani’s YouTube channel, ‘Power of Stocks,’ for guidance. Considering Pani his mentor, Amit diligently honed his skills before resuming his journey as an options trader. However, he gives this credit not to his skill but to the sharp movements in the market during the time of Covid. The first thing he did after earning the profits was return the money he had borrowed from his parents. Without losing hope, he convinced his parents to lend him Rs.10000 and used this amount to trade.

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Previously Rakesh Jhunjhunwala has invested in Tata Motars and acquired 1.32 % of shares. Here the investment style includes elements like risk exposure, defensive strategy, diversification regardless of the investment channels like large cap, small cap, mid cap and others. His selective investment approach is one of its kind as he prefers to invest in only a few stocks. The person in 8th position is Anil Kumar Goel whose portfolio grew by 102.97% over the past year.

Mitesh Patel: The angry young man of options trading

Some of the leading names included in his portfolio are Poly Medicure Ltd., NIIT Ltd., VRL Logistics, Mastek Ltd, and others. His portfolio’s worth at present is Rs. 1,971 crores with a total of 16 stocks in his kitty. Some of his major holdings are Intellect Designs Arena Ltd. with an investment worth Rs.160.4 crores.

The profitability of options trading depends on various factors, including the trader’s knowledge, experience, risk tolerance, and market conditions. However, their options trading offering remains centered upon India’s NSE. They lack the global prowess of IBKR richest option trader in india and therefore earn second place for our list on India’s best options brokers. However, if options trading is considered part of the individual’s business activity, profits may be taxed as business income, subject to the applicable tax rates for business income. Traders are required to maintain detailed records of their options trades, including transaction dates, prices, and any related expenses, to accurately calculate their taxable income. Options traders can explore various strategies such as covered calls, protective puts, or straddles/strangles to capitalize on price movements while managing risk effectively.

His approach is totally different from RK Dhamani who prefers to stay private. Apart from Rakesh Jhunjhunwala, Mukul Agarwal, Ashish Dhawal, Mohnish Pabrai, and Sunil Singhania are considered the most popular investors in India. The third on the list is Anil Kumar Goel with a total of 33 stocks in his portfolio.

All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The average salary of an options trader in India ranges between  ₹ 1.0 Lakhs to ₹ 7.6 Lakhs. Rakesh Jhunjhunwala made a big investment in Titan company recently.

1. He is followed by Rakesh Jhunjhunwala who has 36 years of stock investment expertise.
2. They lack the global prowess of IBKR and therefore earn second place for our list on India’s best options brokers.
3. In particular, IBKR GlobalTrader leads the global industry for simplified stock and options, India included.
4. Some of his major holdings are Intellect Designs Arena Ltd. with an investment worth Rs.160.4 crores.
5. This blog will examine some of India’s top traders, including Rakesh Jhunjhunwala, Radhakishan Damani, Raamdeo Agrawal, and Nemish Shah.

They charge USD 0.60 per option contract plus USD 5 flat per trade. Since options trading almost always includes the use of margin, or borrowed funds, the risks generally are much greater than trading stocks or commodities with only the cash you own. Again, we recommend going through a basic course in options trading, which are usually provided by options brokers in India.

Most trades involve equity-index options—a security that gives the holder the right to buy an index at a given price, called the “strike price”, when the contract expires at a future date. These are often used to place bets on the direction of an index for a small fee. If the strike price for a bullish option is far above the current index level, the cost of the option, called “the premium”, is a tiny fraction of the value of the index. If the index climbs above the strike by expiration, the bet pays off. Most Indian equity-index options are risky short-dated contracts of a week.