πŸ”— CE Short Selling

 Call Eentry Short

πŸ“Œ 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.

πŸŸ₯ When Traders Do CE Short

You short a CE when:

Market is bearish

Market is sideways

Strong resistance nearby

Expectation: price will NOT go above strike

πŸ“Š 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

🧠 CE Buy vs CE Short

🧠 CE Buy vs CE Short

Type View Risk Profit
CE Buy Bullish Limited Unlimited
CE Short Bearish / Sideways Unlimited Limited

🧠 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

Comments

Popular posts from this blog

A.4. Position Trading?

Tools for Trading: All

πŸ”— RSI Divergence Indicator