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Constraints

NOT NULL CONSTRAINT -    Ensures that a column cannot have a null value. DEFAULT CONSTRAINT -    Provides a default value for a column when none is specified  UNIQUE CONSTRAINT -   Ensures that all values in columns are different  CHECK CONSTRAINT -   Makes sure that all values in a column satisfy certain criteria  PRIMARY KEY CONSTRAINT -   Used to uniquely identify a row in the table  FOREIGN KEY CONSTRAINT -   Used to ensure referential integrity of the data  Primary Key - is used uniquely to identify each row in a table . It can consist of one or more columns on a table . When Multiple columns are used on a table it is called composite key.  Foreign Key - Foreign key is a column or columns that references a column most often primary key of another table . The purpose of foreign key is to maintain referential integrity of the data. Pg admin  Data base - training - right click on training - query click  Always add semi colen to run the query  Int - integer  varchar - variable charact
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Options Spread and Moneyness of the Option

# There are 3 types of option spread -

Spread is taking 2 or more position of same company .

Spread is you are taking any option position like more than 1 position , it is a type of option contact taking more than 2 contracts to reduce the risk. 

1. Vertical spread- Spread is you are taking any option position like minimum 2 , so you have taken option position of same expiry , but exercise price is different that is vertical spread .

2. Horizontal spread - different expiry date but same exercise price .

3. Diagonal Spread - Both different , exercise price and date.


#Moneyness of the Option 

1. In the money - Positive cash flow (CM>SP)

2. At the money - Nil cash flow (CM=SP)

3. Out the money - Negative cash flow (CM<SP)


**Put option - market is going 100 , if it is less then only I earn


EXAMPLE 

For Call option strike price is 1150 

A - 1170- In The Money 

B- 1150- At the Money 

C- 1130- Out The Money

For Put option - Strike price rs 520 

A- 510 - In the Money

B - 520 - At the Money

C -530 - Out the Money


Intrinsic Value - Amount by which an option is ITM either on expiration date or before that it is the maximum excess of spot of Underlying Asset over its EP or 0

Time value - Amount option buyers are willing to pay for possibility that option may become profitable prior to expiration , due to positive change in price of underlying , it is difference between option premium and intrinsic value.





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