SOL / TetherUS
Education

Part 4 institutional Trading

15
Why Traders Use Options

Option trading serves multiple purposes:

Speculation: Leveraged bets on price direction.

Hedging: Protecting portfolios against adverse price movements.

Income Generation: Earning premiums through option selling.

Risk Management: Structuring trades with defined risk and reward.

Because options can be combined in various ways, traders can design strategies suited for bullish, bearish, or sideways markets.

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.