The stock market has its own language. And for beginners, words like “Call” and “Put” can sound confusing. You might wonder — aren’t calls just trading recommendations? What’s a “Put”? Do I need to know these terms to invest?
Don’t worry — we’ve got you covered.
In this guide, we’ll explain what Call and Put options really mean, how they work, and why, as a beginner investor, it’s more important to stay focused on solid strategies and expert guidance — like what you get at Teji Mandi, backed by Motilal Oswal.
What Is a Call Option?
A Call Option is a type of stock market contract that gives you the right to buy a stock at a fixed price, within a specific time.
You’d use a call option when you believe a stock’s price will go up in the future. It’s like locking in today’s price for tomorrow’s growth.
For example:
You buy a call option for ₹100, thinking the stock will rise. If the price jumps to ₹120, you gain the difference. If it falls below ₹100, you’re not forced to buy — you just lose the fee you paid for the option.
Note: This is an advanced trading strategy — and not typically needed for long-term beginners.
What Is a Put Option?
A Put Option is the opposite — it gives you the right to sell a stock at a set price, within a certain time.
You’d use a put option when you think a stock’s price will go down. It helps protect your investment or lets you earn from a fall.
For example:
You buy a put option for ₹100. If the stock drops to ₹80, your put lets you sell at ₹100 — giving you a profit. If the price stays above ₹100, the option may not be used.
Again, this is more suited for advanced traders who understand market movements well.
Call vs Put: Quick Comparison
| Point of Difference | Call Option | Put Option |
| Meaning | Right to buy a stock at a set price | Right to sell a stock at a set price |
| Market View | Bullish (you expect the price to go up) | Bearish (you expect the price to go down) |
| Profit When | Stock price goes above the strike price | Stock price goes below the strike price |
| Loss Limited To | Premium paid to buy the option | Premium paid to buy the option |
| Who Uses It? | Investors expecting growth in stock prices | Investors wanting protection from a price fall |
| Best Used For | Earning from rising prices | Hedging or profiting during market dips |
| Obligation | No obligation to buy, only a right | No obligation to sell, only a right |
| Buyer’s Goal | Lock in lower buy price now, sell higher later | Lock in higher sell price now, buy lower later |
| Emotional Advantage | Reduces fear of missing out on rising stock | Offers peace of mind if stock is expected to fall |
Should Beginners Use Options Trading?
Options like Calls and Puts can help traders earn in volatile markets. But they also come with higher risks and require experience to manage well.
If you’re new to investing, the better path is to:
- Focus on long-term stock investmrents
- Stick to fundamentally strong companies
- Follow a model portfolio guided by professionals
That’s exactly what Teji Mandi offers — researched, SEBI-registered advice that keeps your portfolio simple, clean, and goal-oriented.
How Teji Mandi Helps You Avoid Guesswork?
At Teji Mandi, we don’t chase trends or risky trades. Instead, we:
- Help you invest in solid, well-researched stocks
- Offer clear Buy, Hold, and Sell calls
- Update you in real time when any action is needed
- Sync with your Motilal Oswal account for easy execution
You won’t need to worry about complex terms like “strike price,” “expiry,” or “premium” — we handle all the strategy, while you focus on building wealth.
But What If You Still Want to Learn Options?
That’s great! Learning is always encouraged — but start slow.
Understand the basics of how stocks behave. Build your confidence with expert-backed portfolios. Once you’ve gained enough experience and stability, you can explore more complex strategies like Options — with guidance.
But until then, don’t risk your capital on trades you don’t fully understand.
Trade Smart. Grow Steady with Teji Mandi
You don’t need to master complex trades like Calls and Puts to grow your wealth. What you need is:
Research-backed investing strategy Clear, timely trading calls Trusted platform that does the hard work for you.
At Teji Mandi, we make investing simple, smart, and stress-free.
Just subscribe to your preferred product and link your Demat account with any of our 17+ supported brokers. You will start receiving research-backed calls designed to help you take the right action at the right time.
Trade with clarity. Grow with confidence. Start with Teji Mandi.
