• i)    Purchase of Futures and sale a call against it.
• ii)    Purchase of Futures and buy a put option.
  - Downside is protected and upside is open.
• iii)    Buy lower strike price call and sale upper strike price  call. It is called Bull spread.
• iv)    Buy/Sale a Call/Put option.
• v)    Sale of Futures and buy a call.
• vi)    Sale of Futures and sale put.
• vii)   Buy upper strike price Put and sale lower strike price Put. This is called Bear spread.
• viii) Buy a Call and Put of the same strike price. This is called straddle.
• ix)    Buy out of money call and out of money Put. This is called strangle.
• x) There can be hundreds of strategies one can play through options, but money is made if you are correct only, otherwise your loss is minimised.
• xi) There is no need of cutting stop losses now since purchase of Put option will ensure your downside fall whereas purchase of Call Option will ensure your upside losses in case of short sales.

Important tips on "F & O " derivatives market

1. Purchase futures of shares in such a way that even it falls you can make 'Mark to Mark' payments. We suggest money of Rs. 2.00 - 2.50 lakhs per future so that difference if any can easily be paid plus margin to be paid for selling CALL or PUTS. This will also ensure that you can even take delivery of your entire future in case of any emergency or panic in market. Playing within capacity is always rewardable and safe.
2. When your future falls by 2% - 3% from your purchase price sale a C.A. preferably Deep CALL.
3. When your futures fall below your Deep CALL purchase a P.A. (Insurance) and you can even sale lower P.A. as per market situation.
4. C.A. is like Rent. P.A. is like Insurance.
5. In rising market 'Bull spread' and in falling market 'Bear spread* are very good strategies.
6. For the 1st half of the "F & O" market it is good to be long because even if you go wrong you can sale Deep C.A. and collect premiums and in the later half of the "F & O" market since the premiums become very low try to purchase CALL or Put as desired. It is safe to play in options in the later half of "F & O" market.
7. Take delivery of entire lot size of script and sale continuously call every month. The shares will remain in your demat A/c.
8. One can decide his own price of purchase and sale depending on the strike price available for different securities.
9. Roll over of options - A option can be rollovered from one expiration date to another by buy/Sale of current sauda and accordingly buy/sale of next clearing sauda. The premium on option for a particular strike price option is always higher for the next clearing than current clearing since more time value is attach to it.

Please treat share market as "Business" and not "Phatka" for Long Term Gains. "The sensex shall make new highs and lows too during course of time". Nobody can forecast the market correctly other than God who is almighty and Powerful.

The theme of Options/Futures/Derivatives Trading is to achieve the objective, "Minimize your losses and Maximize your profits". Thus the risk/reward ratio is always favorable when one trade through options judiciously.