why trade in options:-
well before  trading in options one must ask sir why i have to trade in options instead of stocks ?
answer:-   lets take an example if i buy icici bank share at 1000 rupee there are two options that either it will go up or down if it will go up its good but if it will go down say 900 rupees i just have to hold or wait for another one month or one year to cover up your loss.  Now take one more example i buy 250 icici shares at 1000 and also sell 1020 call option  at 40 and buy 960 put at 20.now if lets say icici bank expires at 1020 .well in that case we profit+ 20 rupees from share  +40 rupees from call option and -20 rupees loss from put option that is overall profit is 40 rupees. or around 3.5% of your investment  and also benefit here is that we are also protected downside .this example is just a drop from ocean means there are many another ways also to get profit without risk or with minimum risk like 
·        Iron condor
·        Calendar spread
·        Married put
·        Butterfly
·        Long strangle
·        Short strangle
·        Straddle
·        Protective collar
And many more but these are just tools to help you in market because the warrior who wins the battle is not the one who has many tools but he is the one who know where and when  to use which tool.

4 comments :

  1. Useful information shared here. Trader should know about the market and its working before entering into the market. Commodity tips

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  2. Trading in options is very fruitful only when you know how to trade and when to trade, this can be done by having great knowledge and experience in trading. To minimize the risk traders can take intraday tips before investing.

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  3. These options tips is valuable.thanks for sharing this tips. keep posting. Epic Research

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  4. There are many strategies available that limit risk and maximize return. With a little effort, traders can learn how to take advantage of the flexibility and power options offer.
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