Why Traders Use Options
1. Hedging
Investors use options to protect their portfolios from downside risk.
Example: Buying a put option acts like insurance.
2. Speculation
Options allow traders to take directional bets with limited capital.
3. Income Generation
Selling options (covered calls, cash-secured puts) generates regular income through premium collection.
4. Leverage
Options enable traders to control large positions with small capital.
1. Hedging
Investors use options to protect their portfolios from downside risk.
Example: Buying a put option acts like insurance.
2. Speculation
Options allow traders to take directional bets with limited capital.
3. Income Generation
Selling options (covered calls, cash-secured puts) generates regular income through premium collection.
4. Leverage
Options enable traders to control large positions with small capital.
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.