π CE Short Selling
Call Eentry Short
π What is CE Short?
CE Short = Shorting (Selling) a Call Option
CE = Call Option
Short = Sell first (without owning)
So, CE Short means you are selling a Call Option expecting the market to stay below the strike price or fall.
π₯ When Traders Do CE Short
You short a CE when:
Expectation: price will NOT go above strike
π Example
NIFTY = 22,000
You believe it won’t go above 22,200
You sell 22,200 CE at ₹100
Outcomes:
✔ If market stays below 22,200
→ Premium falls
→ You buy back at ₹40
→ Profit = ₹60
❌ If market goes above 22,200 strongly
→ Premium rises
→ Loss can be large (unlimited risk)
⚠ Important Risk
CE Short has limited profit
But unlimited loss
Requires margin
Best for experienced traders
π§ CE Buy vs CE Short
π§ CE Buy vs CE Short
| Type | View | Risk | Profit |
|---|---|---|---|
| CE Buy | Bullish | Limited | Unlimited |
| CE Short | Bearish / Sideways | Unlimited | Limited |
π§ CE Trading Terms
| Term | Meaning | Market View |
|---|---|---|
| CE | Call Option (Right to Buy) | Bullish |
| CE Short | Selling Call Option | Bearish / Sideways |
| CE Catch | Catching Upward Move by Buying CE | Bullish Momentum |
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