Why Do People Trade Options?
Traders use options for three main reasons:
a) Hedging
To protect their portfolios from losses.
Example: If you own shares and fear a price drop, you can buy put options to act as insurance.
b) Speculation
To profit from price movements using small capital.
Options allow traders to control large positions for a fraction of the cost.
c) Income Generation
By selling options, traders can earn premium income regularly.
Traders use options for three main reasons:
a) Hedging
To protect their portfolios from losses.
Example: If you own shares and fear a price drop, you can buy put options to act as insurance.
b) Speculation
To profit from price movements using small capital.
Options allow traders to control large positions for a fraction of the cost.
c) Income Generation
By selling options, traders can earn premium income regularly.
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.