Part 6 Learn Institutional Trading

Why Trade Options?

Options are extremely popular because they offer:

1. Leverage

You can control a large position using a small amount of money (the premium).
Example: Buying a stock may cost ₹1,00,000, but a call option may cost only ₹3,000.

2. Hedging

Investors use options to protect their portfolios from losses during market corrections.

3. Income Generation

Option sellers generate regular income through premium collection strategies.

4. Flexibility

You can build strategies that make money in rising, falling, or sideways markets.