PCR Trading Strategies

Common Mistakes & Myths about Options

Myth: Options are only for experts. (Truth: Beginners can use basic strategies safely.)

Mistake: Treating options like lottery tickets.

Mistake: Ignoring time decay and volatility.

Mistake: Over-trading due to low cost of buying options.

Future of Option Trading

Algo & Quant Trading: Algorithms dominate global options volume.

Retail Boom: Platforms like Zerodha, Robinhood, and Binance bring retail investors into options.

AI & Machine Learning: Predictive models for volatility and pricing.

Global Expansion: Options on new assets like carbon credits, crypto, and ETFs.

Conclusion

Option trading is a powerful tool — a double-edged sword. It can be used for risk management, speculation, or income generation. To master options, one must:

Learn the basics (calls, puts, pricing).

Understand strategies (spreads, straddles, condors).

Respect risk management and psychology.

Stay updated with market trends and regulations.

With proper discipline, options can transform how you interact with markets, offering opportunities that stocks and bonds alone cannot.