Advantages of Option Trading
Leverage – Small capital controls large positions.
Flexibility – Strategies for any market condition.
Defined Risk (for buyers) – Maximum loss = premium.
Hedging Tool – Protects portfolios from crashes.
Income Generation – Through selling options (covered calls, spreads).
Risks in Option Trading
Time Decay – Value erodes quickly near expiry.
Unlimited Loss for Sellers – Naked option selling is very risky.
Volatility Crush – After events like results, volatility falls and option premiums collapse.
Liquidity Risk – Some contracts are illiquid, making exit difficult.
Psychological Stress – Options move very fast; requires discipline.
Leverage – Small capital controls large positions.
Flexibility – Strategies for any market condition.
Defined Risk (for buyers) – Maximum loss = premium.
Hedging Tool – Protects portfolios from crashes.
Income Generation – Through selling options (covered calls, spreads).
Risks in Option Trading
Time Decay – Value erodes quickly near expiry.
Unlimited Loss for Sellers – Naked option selling is very risky.
Volatility Crush – After events like results, volatility falls and option premiums collapse.
Liquidity Risk – Some contracts are illiquid, making exit difficult.
Psychological Stress – Options move very fast; requires discipline.
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
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
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
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.