---
title: 'Day 72: Option Trading Explained Simply'
source: 'https://youtube.com/watch?v=n85TTohn54A'
video_id: 'n85TTohn54A'
date: 2026-08-18
duration_sec: 86
channel: 'Booming Bulls'
---

# Day 72: Option Trading Explained Simply

> Source: [Day 72: Option Trading Explained Simply](https://youtube.com/watch?v=n85TTohn54A)

## Summary

This video, episode 72 of the Learn Trading series, provides a beginner-friendly explanation of options trading, focusing on the basic concepts of call (CE) and put (PE) options. It clarifies how these options work, how to read Nifty option symbols, and touches on the impact of weekly expiries and theta decay.

### Key Points

- **Introduction to Options** [00:02] — The video introduces the two main types of options: call (CE) and put (PE). It sets the stage for explaining how they work in trading.
- **Call Option (CE) Basics** [00:15] — A call option is bought when a trader anticipates the market will go up. If the market rises, the trader profits; if it falls, the trader incurs a loss.
- **Put Option (PE) Basics** [00:30] — A put option is bought when a trader expects the market to go down. If the market falls, the trader profits; if it rises, the trader loses.
- **How to Read a Nifty Option Symbol** [00:43] — A Nifty call option is written as 'Nifty CE', followed by the strike price and expiry date. This format helps identify the specific contract.
- **Weekly Expiry and Theta Decay** [01:09] — Nifty now has weekly expiries every Tuesday. As expiry approaches, theta (time decay) accelerates, causing option premiums to lose value rapidly.

### Conclusion

The video offers a foundational understanding of call and put options, emphasizing the importance of market direction and the impact of time decay on option prices.

## Transcript

Contracts don't mean anything real. Welcome today to episode 72 of the Learn Trading Welcome today to episode 72 of the Learn Trading series.  Now what is the option?  Now you know that there is a thing called call in option trading.  There is something called a put.
If the market goes up, I would make a profit if you have bought a call. So the call can go up as well, the call can go down as well.  The put can go down dimensional.  I just told you the difference. So CE means
that the brother trader is betting.  The trader is anticipating that the price will go up. Suppose the price goes up then you will make profit.  Suppose the price goes down then you will incur a loss.  This is the story of CE. When does the PE man buy?  When he feels
that the market will go down.  Whenever the market goes down, you bought PE and you will make profit.  And anytime you buy PE and the market goes up, you make a loss. So how do you buy CE? Write Nifty C.  Yes, let's write Nifty C.
But Nifty options do not have a single format. Look, let me explain the format to you. written like this.  Nifty CE is written. After this, its strike price is written and its expiry is written next to it. It has a lot of volume.
Earlier there used to be weekly in Bank Nifty etc. and then in Nifty also.  Now after closing everything, Nifty Sussex has been made weekly. Every Tuesday one will expire.  It will What will happen if it ends?   A lot will happen because theta gets lost.
lot will happen because theta gets lost.