Uses of Options
Hedging: Investors use options to protect their portfolios against adverse price movements. For instance, a trader holding stocks can buy puts to guard against potential declines.
Speculation: Traders use options to profit from expected price movements with limited initial capital.
Income Generation: Writing (selling) options, especially covered calls, allows investors to earn premium income.
Advantages of Option Trading
Leverage: Options allow control over large positions with smaller capital.
Flexibility: They can be used in various strategies like spreads, straddles, and strangles.
Risk Management: Losses are limited to the premium paid for option buyers.
Hedging: Investors use options to protect their portfolios against adverse price movements. For instance, a trader holding stocks can buy puts to guard against potential declines.
Speculation: Traders use options to profit from expected price movements with limited initial capital.
Income Generation: Writing (selling) options, especially covered calls, allows investors to earn premium income.
Advantages of Option Trading
Leverage: Options allow control over large positions with smaller capital.
Flexibility: They can be used in various strategies like spreads, straddles, and strangles.
Risk Management: Losses are limited to the premium paid for option buyers.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.